Jiangsu province auctions pork reserves despite price collapse

The state-backed stockpiler in Jiangsu province in eastern China is selling 1,600 tons of pork reserves today despite that live hog prices have plunged since the second half of December 2022.

The reserve sales come at a time when pork demand is expected to rise due to the upcoming Lunar New Year holiday.

But live hog prices had fallen nearly 8% in the second half of December last year and continued to slide in the first week of January this year.

China’s National Development and Reform Commission on Monday issued an “excessive price decline” alert for the hog market.

The key indicator of the hog-to-corn price ratio fell to 5.93:1 marking the first time below 6:1 since late June last year.