Chinese pork prices analysed
Sharp increases in domestic Chinese pork prices have been analysed. In August, China's pork market was steady, with no noticeable increases in price.
Frbiz.com one of China's leading B2B search platforms has made the analyses. This steadiness mentioned, was mainly due to the consumer atmosphere in the second quarter being influenced by fast rising prices in June and July, which were caused by pig diseases and China's southern floods decreasing pork supply.
The first week of this month, China's pork prices were at a record high. The national pork average wholesale price reached RMB 17.21 per kilogram - a year-on-year increase of almost 8%. Breeding stock fell and the numbers in July saw a year-on-year drop of 3.7% head. In July, breeding stock was 44 million head dropping 2.2% year on year.
In September, after the beginning of autumn, the weather gets colder, which is the pork sales season. The Mid-Autumn festival and National Day holiday stimulate pork demand, and therefore the market demand of pork will increase. Plus, feed and raw materials like corn, wheat and so on will also maintain high operations and also stimulate a rise in pork prices. Therefore, in late September and October, pork prices may start a new rising price trend.
This year's high point will be close to the 2009 high level. As pork prices continue to rise, farmers begin to reduce the market availability rate of the livestock, therefore, the supply in such a tight situation may continue into the late fourth quarter. China's demand may exceed supply at the height of the pork season. According to the situation in August, the average wholesale price of pork was RMB 17.00/kg, and the first week of this month, the price even reached RMB 17.21/kg. According to the current situation, Frbiz thinks that this year's pork wholesale prices can reach RMB 19/kg but will not exceed the RMB 23/kg level seen in 2008.
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