SunSirs: Strong Supply and Weak Demand, China Domestic Pig Prices Continue to Bottom Out

According to the Commodity Market Analysis System of SunSirs, the domestic and international prices of three RMB live pigs continued to decline weakly last week, with an average price of 9.75 RMB/kg at the beginning of the week and 9.57 RMB/kg over the weekend, a decrease of 1.85% during the week.

Entering April, the problem of strong supply and weak demand in the domestic pig market has not yet eased. Pigs continue to be slaughtered, and the supply in the pig market remains loose. The demand in the terminal meat market remains sluggish, and pig prices continue to be under pressure and hit a new low in recent years. On April 3rd, the average price fell to 9.57 RMB/kg, a decrease of 22.07% from January 1st at the beginning of the year and a decrease of 34.36% from the same period last year.

Last week, domestic corn prices fluctuated slightly and fell by 0.06% during the week. Pig prices continued to be weak, and the domestic pig to grain ratio dropped significantly. Last week, the overall domestic pig to grain ratio fell to around 4.1:1, and the loss situation in the breeding industry continued to expand.

The analyst of SunSirs's pig products believes that under the pressure of strong supply and weak demand, the domestic pig market prices will continue to be under pressure and operate weakly in the short term. The second batch of central frozen pork reserve and storage policies will be implemented in April, which will to some extent support the bottom of domestic pig prices. The downward trend of domestic pig prices will gradually stabilize.

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