SunSirs: China Domestic Live Pig Prices Fluctuate Upward

According to data from SunSirs' Spot Market Monitor, domestic prices for commercial live pigs fluctuated upward last week. The average price stood at 9.43 RMB/kg at the beginning of the week and rose to 9.83 RMB/kg by the weekend, marking a weekly increase of 4.24%.

As late April commenced, the approach of upcoming holidays prompted downstream slaughterhouses to initiate concentrated stockpiling efforts. This trend was reinforced by farmers' persistent reluctance to sell—driven by a desire to hold out for higher prices—as well as continued "catch-up" price rallies in regions that had previously experienced sharp declines. Consequently, domestic live pig market prices continued their recovery. On balance, current supply within the domestic live pig market remains relatively ample, while demand in the downstream meat market remains sluggish. Amidst this tug-of-war between bullish and bearish forces, domestic live pig market prices generally trended upward last week.

Last week, domestic corn prices remained largely stable, while pig prices fluctuated upward; as a result, the domestic pig-to-grain price ratio saw a slight recovery, currently hovering around 4.2:1. Overall, the live pig breeding industry remains in a state of significant financial loss.

SunSirs' live pig market analyst observes: Supported by a temporary tightening of supply, domestic live pig market prices still possess some room for further recovery in the short term. However, constrained by the currently high inventory levels of breeding sows, the market lacks sufficient momentum to sustain continued price increases in the period ahead.

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