Live pig price soared in May

Live pig price was CNY13.4/kg, a 24.6% increase from the previous month. Pig price had nearly a threefold increase in the first three weeks, and then showed a downtrend in the last week in May.

Experts believe there are five factors to promote the live pig prices.

• Sow inventory declined continuously. According to data from MOA, sow inventory was 46.72 million heads which is lower than the normal quantity.
• May Day Holiday stimulate a big demand of pork.
• Live pig farmers started to hold back suppliers in May Day holiday, so slaughterhouse have no choice but to passively increase price.
• In south region, government enforces a trial of selling iced fresh chicken. Customers started to switch their purchase willing to pork rather than chicken.
• There are rumors that the government interference live pig market via require the slaughterhouse to increase price.

But experts believe that the live pig price will keep increasing only in a short term, because soar of the live pig price is attributable to the temporary effects of government policy and holiday demand. Oversupply in live pig market will inhibit the rising live pig price.

Source:  http://www.feedtrade.com.cn/livestock/pigforecast/2014-06-04/2073473.html