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 14.22 RMB/kg at the beginning of the week and 13.98 RMB/kg at the end of the week, a decrease of 1.69% during the week.

Due to the lower than expected demand in the terminal meat market, as domestic pigs gradually enter the market circulation stage, the problem of strong supply and weak demand in the domestic pig market has become more prominent. After completing the acquisition task, slaughter enterprises continue to purchase at lower prices, and the overall pressure on the domestic pig market prices continues to weaken.

Last week, domestic corn prices were weak, falling by 1.61% during the week, while soybean meal prices dropped significantly, falling by 4.22% during the week. The cost of breeding and feeding continued to decline, and the price of employed pigs remained weak. As of January 12th, the domestic pig to grain ratio remained around 5.7:1, which remained stable compared to the previous week. The overall domestic pig breeding industry is still in a loss making situation.

SunSirs pig product analyst believes that the rebound in demand in the terminal meat market at the end of the year has not yet shown, and the further drop in pig prices to the 14 RMB/kg mark will to some extent support farmers' reluctance to sell and price support mentality. In the short term, the domestic pig market prices are expected to stop falling and stabilize.

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