Chinese Pork Prices to Stay Low, Fueling Deflationary Pressures
- Ample supply of pigs and sluggish consumption to blame
- Disease and industry consolidation skewing pork cycle
Consumer prices fell last month for the second time this year and weak pork prices took much of the blame.
Source: Bloomberg
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Chinese pork prices are likely to stay low for longer, extending a run of miserable profits for pig farmers and complicating efforts to stave off deflationary pressures in the economy.
An ample supply of hogs and sluggish consumption due to a slowing economy look set to keep the market under pressure, despite the advent of peak demand season over winter. Prices may not recover until the second half of next year.