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Free AccessMNI BRIEF: Mild Increase In Hog Prices Expected - Fitch
China’s pork prices, a key component of the country's CPI index, will increase moderately in H2 as persistent oversupply restrains the impact from seasonal increases in demand, according to Fitch Ratings on Wednesday.
The ratings agency said large breeders have increase production aggressively in recent years as higher capacity utilization allows breeders to cut unit non-cash production.
Looking into 2024, Fitch expects supply to tighten in 2H 2024 if the current trend of decreasing sows continues.
Pork prices will continue to add to disinflationary pressures in the second half of the year as live pig prices rise moderately but fall short of last year’s seasonal highs, experts recently told MNI. (SEE: MNI: Pork Base Effects Add To China Disinflation Risks - Bonds & Currency News | Market News)
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