Pork Prices Unlikely To Rise In Q3

Chinese demand for pork may increase in Q3 but prices are unlikely to rise significantly due to an abundance of supply, according to Yicai. Huatai Securities noted major pork producers had suffered significant losses in Q2 due to low prices, with the asset-liability ratio of listed companies remaining high and fixed-asset investment slowing. Given heavy losses and weak cashflow, major breeders may reduce sow production capacity across the country which could support prices in 2024. However the market has also seen a recent increase in secondary fattening, which shifts present supply into the future, putting downward pressure on 2024 price.