China’s Hog Futures and Shares Tumble Amid Oversupply and Dampened Demand

China’s hog futures and shares in leading hog production companies witnessed a significant drop due to an oversupply and subdued demand in the market. Contrary to the customary surge ahead of holidays, hog prices plummeted ahead of a week-long holiday beginning September 29, with cash hog prices descending from 16.48 yuan per kilogram on September 24 to 15.66 yuan on October 8, as per analysts at Huachuang Securities. Although newborn piglet numbers saw an 8.4% YoY rise from February to July, weak consumption linked to a slow economic recovery is impacting the market negatively. Major producers like Muyuan Foods and New Hope Liuhe saw shares dive to their lowest since January 2020 and February 2019 respectively. Moreover, Chia Tai Investment Co Ltd withdrew its IPO application, signaling challenges in the sector spurred by lower-than-expected swine prices in China.