China’s national planners said on Sunday that they would release their fifth stockpile of pork as pig prices have been relatively high recently.
The National Development and Reform Commission (NDRC) said in a statement that it will closely monitor pig supply and demand and will continue to release pork stockpiles.
Chinese hog futures rose 6% on Monday after demand surged during the week-long National Day holiday as tight supplies pushed spot prices higher.
The Dalian Commodity Exchange’s most active January live pig contract rose 5.8% to reach 23,735 yuan ($3,336.71) on March 2, the highest since the start of pig futures trading last year. Profitable for one day.
42:00 PM (0642 GMT).
Cooler temperatures and a spike in consumption during the holiday season have boosted demand for fresh meat, boosting daily slaughter volumes, Tianfeng Agriculture analyst Wu Li said in a note Sunday. Pig spot prices reached 26.2 yuan per kg on Sunday, up 8% from Sept. 25, the note added. The price is the highest since March 2021.
Futures rallied after spot prices surged as Dalian resumed trading on Monday.
China’s pig production has been declining in recent months after farmers suffered severe losses over the past few months, prompting moves to scale back breeding.
Producers have started ramping up production this year as prices have improved, but it has taken months to ramp up supply, and many worry about the uncertainty in meat demand as China’s economy slows.
China’s national planners said on Sunday that it would release a new batch of pork from state stockpiles to bring prices down.
State planners are trying to reassure markets that supplies are adequate, accusing farmers of withholding supplies, and accusing informal media reports of fueling market concerns.
Yuan Song, chief analyst at trading firm Juxing Agriculture Group, said additional measures are expected, including the sale of pork stockpiles and pledges to key producers to maintain stable production.
Pork producer shares also rallied on Monday, with top producers Muyuan Foods Co Ltd and Wens Foodstuff Group Co Ltd both up 7%.
Rising pig prices also helped poultry companies, which suffered losses in the first half of the year.
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