# Pork supply increased in 2017, and hog price is predicted to be about 14.5yuan/kg in 2018 - Analysis and Viewpoints of China Agriculture  - CnAgri-China Agriculture Consultant

> CnAgri says China's hog prices fell from about 18 yuan/kg in early 2017 to roughly 13 yuan/kg by mid-year, then held around 14-15 yuan/kg in the second half. Official data showed sow inventory down 5.81% year on year in November 2017, but pork supply rose about 4% in 2017 as slaughter weights and output per sow climbed. The analysis forecasts hog prices near 14.5 yuan/kg in 2018, with new capacity expected to add to supply.

- Date: 2018-02-09 · published 2018-02-09T12:00:00.000Z
- Category: market · region China · magnitude low
- Page: https://feedsoft.ai/events/66493-pork-supply-increased-in-2017-and-hog-price-is-predicted-to-be-about-14-5yuan
- Commodities: [Lean Hogs](https://feedsoft.ai/c/HOGS.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Expanding hog capacity points to continued pork oversupply and weak domestic hog prices, which reduces Chinese farmers' incentive to expand feed purchases. Lower feed costs from cheap corn and soymeal are partly why hog prices fell, so this outlook is mildly bearish for feed grain and meal demand.

## Read by commodity

- SBM: bearish ▼
- CORN: bearish ▼
- HOGS: bearish ▼

## Sources

- en.cnagri.com: http://en.cnagri.com/news/insight/20180209/299368.html

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