Pork prices fall continuously, pork imports surged 270% in the first 8 months
On the morning of September 22, 2016, the Ministry of Agriculture announced that, effective immediately, the ban imposed since 2001 on U.S. boneless beef and bone-in beef from cattle under 30 months of age would be conditionally lifted, allowing U.S. beef that meets China's traceability system requirements and inspection and quarantine requirements to be exported to China. The traceability system requirements and inspection and quarantine requirements for U.S. boneless beef and bone-in beef from cattle under 30 months of age shall be formulated separately.
In addition, the General Administration of Customs released import data for January to August 2016 yesterday, showing that in the first 8 months China's total pork imports reached 1.138 million tonnes, with the import value up 270.9% year on year, hitting a record high. Of that, pork imports in August reached 192,348 tonnes, a slight increase over July.
Recently, pork prices have fallen rapidly in succession, and only 10 provinces and regions nationwide still have an average pork price above 9 yuan/jin. On September 22, the national average price fell to 9.05 yuan/jin, and in the lowest region——Northeast China, prices in the low 8 yuan range have already appeared. According to analysis, there is still room for pork prices to fall further.
Pork market sluggish, slaughter weights surge
Recently, hog slaughter prices in production areas nationwide have fallen to varying degrees, with pork prices nearly breaking below 9. According to hog price quote statistics monitored by Newmu Network, on September 22, 2016, the Newmu pork price index was 147.01, down 0.44 points from yesterday. Today's national average hog price is 9.05 yuan/jin, down 1.55% from the same period last week.
In Northeast and North China, hogs priced at nine yuan have basically disappeared, and large numbers are flowing into hog markets in East China and Southwest China, causing prices in those markets to decline repeatedly.
Panic selling has appeared in the Central China market, and the weight of hogs purchased by slaughterhouses has increased. It is expected that settlement prices may continue to be lowered. At present, the highest pork price in Central China is reported at 9.2 yuan/jin, while pork prices in Hunan and Hubei continue to decline, and slaughterhouses are purchasing smoothly.
In South China, trading volume in the live hog wholesale market has declined compared with the beginning of the month, and slaughter weights have surged. In the Sihui area of Guangdong, slaughter weights are basically above 270 jin, and the slaughter price has fallen from 9.5 yuan/jin at the beginning of the month to the current 9.05 yuan/jin.
Statistics on imported meat in August 2016: volume and price both rose sharply
On September 22, the live hog market declined slightly from yesterday. Current mainstream slaughter prices for crossbred hogs in some areas nationwide: North China pork price 8.9 yuan/jin-9.0 yuan/jin, Southwest China pork price 9.15 yuan/jin-9.35 yuan/jin, Henan pork price 9.0 yuan/jin-9.2 yuan/jin, Guangdong Sihui pork price 9.0 yuan/jin-9.3 yuan/jin, Fujian Longyan pork price 9.0 yuan/jin-9.3 yuan/jin.
The pork price index analysis department believes that the pork market has remained sluggish after the holiday, with trading volume shrinking, while as autumn deepens and temperatures drop, slaughter weights continue to rise, and with the balance of supply and demand broken, there is still room for pork prices to fall. It is recommended that breeding enterprises maintain their slaughter pace and slaughter on schedule to ensure returns.