Hog price has kept going south moderately in major production regions for two weeks, falling to a level of RMB10.27/kg. Though hog price is still 5% above the market level prior to the state pork procurement, hog farms have been plunged in the red again.
The key cause behind the hog price decline is soft demand. On the other hand, hog inventory still looks large, suggesting further hog price decline in July and Aug. hog price is predicted to pick up during the busy season of consumption from Sep. on.
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