After a sustained fluctuating decline, at the close on the 11th day of 6 month, the price of the main live hog futures contract on the domestic futures market had fallen to 9195 yuan/ton. It had previously hit a post-listing low of 9040 yuan/ton on the 5th day of 11 month, with the maximum decline from the beginning of 9 month reaching nearly 30%.
In 10 month, domestic live hogpricesfell more than expected. Hog producers continued to incur heavy losses on market hog sales, while pressure on companies’ costs and cash flow continued to mount. In addition, production-capacity reduction policies continued to have an effect, and as temperatures in the north kept falling during the month, regional disease prevention and control became increasingly difficult. Large-scale farms, relying on relatively well-established prevention and control systems, were affected to a relatively limited extent. However, disease conditions among small and medium-sized businesses gradually worsened, further accelerating the reduction in breeding sow capacity at small and medium-sized farms. Hog prices remained weak in 11 month, and the industry’s heavy-loss situation was unlikely to change. In addition, disease prevention and control among pigs in the northdiseasesremained difficult in winter. Domestic breeding sow inventories are expected to continue declining next month.
In 10 month, domestic live hogpricesfell more than expected. Hog producers continued to incur heavy losses on market hog sales, while pressure on companies’ costs and cash flow continued to mount. In addition, production-capacity reduction policies continued to have an effect, and as temperatures in the north kept falling during the month, regional disease prevention and control became increasingly difficult. Large-scale farms, relying on relatively well-established prevention and control systems, were affected to a relatively limited extent. However, disease conditions among small and medium-sized businesses gradually worsened, further accelerating the reduction in breeding sow capacity at small and medium-sized farms. Hog prices remained weak in 11 month, and the industry’s heavy-loss situation was unlikely to change. In addition, disease prevention and control among pigs in the northdiseasesremained difficult in winter. Domestic breeding sow inventories are expected to continue declining next month.