Chinese pig price further down this week

Last week, this contract also fell almost 5% in value. One of China's largest pig producers has expressed gloomy price expectations. 

The September live pig delivery contract is now (Thurs 27-5) trading for 22,445 (Chinese Renminbi). Converted into euros, this equates to a price of €2,89. At the beginning of May, these were still sold for more than ¥27,00, which is about €3,50 converted. Earlier this year, a highest level of ¥29,80 was tapped. That equates to a price of €3,83 per kilogram of live weight.

Pigs weighing 'polar bears and hippos'
A pig trader from northern China reports to Bloomberg news agency that many of the pigs being traded weigh more than 200 kilograms. A weight described as equal to that of a 'polar bear or hippo'. The 200 kilo is also considerably heavier than a normal slaughter weight of 125 kilos.

Many pig farmers who were not threatened by African swine fever have long held their animals in the hope that pig prices will recover. The opposite is happening now. The Chinese pig price is falling further week on week, partly due to the large supply of heavy animals.

Meat prices under pressure
Wholesale prices for pork are under pressure, according to Bloomberg. Traditionally weak demand after the Chinese New Year, sharply increased imports and panic selling in some areas due to the threat of African swine fever are weakening the market.

One of the largest pig producers in the country, Muyuan Foods Co., said in a news conference this week that it expects pig prices in China to continue to fall into next year. Prices may not even reach a bottom until 2023.