# China hog producers' reluctance to reduce oversupply seen supporting soybean demand

> Chinese hog producers are reluctant to cut oversupply despite the agriculture ministry urging destocking after 2023 losses averaging 76 yuan per head. Trade sources say high capital expenditure is keeping producers from cutting output.

- Date: 2024-01-25 · published 2024-01-25T12:00:00.000Z
- Category: market · region China · magnitude low
- Page: https://feedsoft.ai/events/32122-china-hog-producers-reluctance-to-reduce-oversupply-seen-supporting-soybean
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

Persistent hog oversupply in China keeps soymeal feed demand supported near term, which limits downside for soybean and meal prices.

## Read by commodity

- SBM: bullish ▲
- SOY: bullish ▲
- HOGS: bearish ▼

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/012524-china-hog-producers-reluctance-to-reduce-oversupply-seen-supporting-soybean-demand

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.