STOCKS | Live Hog Prices Rebound After Prolonged Weakness

According to Jin10, live hog prices in China have rebounded after a prolonged slump, with national live hog prices rising for a third consecutive week in the last week of August. According to the Ministry of Agriculture and Rural Affairs' monitoring of 200 wholesale markets, the national average pork wholesale price last week was 16.22 yuan per kilogram, up 0.7% from the previous week but still down 17.9% year on year. Liu Tong, manager of the statistics department at Xinfadi Market, said supply of live hogs remains ample and slightly excessive, and that last week's modest price increase was based on slaughterhouses controlling volumes rather than a shortage of supply. The industry is generally cautiously optimistic, with some institutions expecting the sector to gradually enter a phase of excessive sow culling in the third quarter and to see a real profit reversal in 2027. In the futures market, far-month live hog contracts are trading significantly above near-month contracts.