According to the Commodity Market Analysis System of SunSirs, the domestic and international prices of three yuan live pigs continued to rise last week, with an average price of 15.63 RMB/kg at the beginning of the week and 16.88 RMB/kg at the end of the week, an increase of 8.00% during the week.
Entering August, the high temperature and rainy weather hindered the transportation of live pigs, coupled with farmers' reluctance to sell at high prices, and the policy support for frozen meat, the domestic pig market prices continued to be strong. On August 4th, the pig price rose to 16.88 RMB/kg, a significant increase of 22.59% compared to the low point of June 30th (13.77 RMB/kg) in the first half of the year. Within five weeks, the increase in pig prices erased the decline in the first half of the year.
Last week, the domestic corn price remained stable at a high level, with a slight decrease of 0.05% during the week. Soybean meal prices were relatively strong, with a 2.23% increase during the week. Overall, the cost of breeding and feeding is still at a relatively high level, which will provide strong support for the bottom of pig prices. After the rapid recovery of pig prices, the domestic pig to grain ratio has rebounded, and the overall enthusiasm of farmers for restocking has become stronger. The overall domestic pig stock will stop falling and stabilize.
SunSirs Pig Product Analysts believe that overall, the demand in the end market remains weak in the summer, and the rapid rise in pig prices is not a concern for end consumers. Slaughtering companies are more cautious in purchasing, and after pig prices rebound to around 17 RMB/kg, farmers' intention to sell and monetize has increased. The stage tight supply situation in the domestic pig market is gradually easing, and there is insufficient momentum for the continued increase in pig prices in the future.
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