# Institution: Low Hog Prices Weigh on Industry Profits, Accelerated Capacity Reduction Expected

> A brokerage review of Chinese agricultural companies’ third-quarter results found that low hog prices and industry oversupply left major pig producers loss-making and increased pressure on their balance sheets. Poultry results were mixed, while feed-company margins faced pressure from higher fishmeal costs and losses in hog farming; the review expects pig-sector capacity reductions to accelerate.

- Date: 2026-11-05 · published 2026-11-07T07:37:53.148Z
- Category: report · region China · magnitude low
- Page: https://feedsoft.ai/events/85733-institution-low-hog-prices-weigh-on-industry-profits-accelerated-capacity
- Commodities: [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Fishmeal](https://feedsoft.ai/c/FISHMEAL.md), [Lean Hogs](https://feedsoft.ai/c/HOGS.md)

## Why it matters

Losses among hog producers may eventually reduce animal numbers and feed demand, weighing on near-term demand for feed ingredients such as soybean meal. Higher fishmeal costs are also squeezing aquafeed margins, although the report does not establish a broad price shift for feed commodities.

## Read by commodity

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

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBM | 2024-04-09 | [FAPRI Report Outlines Expected Growth in Renewable Diesel, SAF Production - World-Energy](https://feedsoft.ai/events/15223-fapri-report-outlines-expected-growth-in-renewable-diesel-saf-production-world.md) | +1.3% | +12.5% |
| SBM | 2022-08-12 | [USDA Lowers Corn Production, Increases Soybean Production in August Reports](https://feedsoft.ai/events/39956-usda-lowers-corn-production-increases-soybean-production-in-august-reports.md) | -10.9% | -15.4% |
| SBM | 2026-10-28 | [Corn Soybean Prices Dip as US Harvest Exceeds Expectations \| Feed Strategy](https://feedsoft.ai/events/67-corn-soybean-prices-dip-as-us-harvest-exceeds-expectations-feed-strategy.md) | -3.8% | — |
| SBM | 2020-08-18 | [U.S. chicken production, prices down - High Plains Journal](https://feedsoft.ai/events/51766-u-s-chicken-production-prices-down-high-plains-journal.md) | -3.1% | +5.4% |
| SBM | 2019-07-03 | [African swine fever reduces China’s pork production \| MU Extension](https://feedsoft.ai/events/58088-african-swine-fever-reduces-china-s-pork-production-mu-extension.md) | +1.8% | -1.7% |
| HOGS | 2017-07-19 | [Higher US Hog Numbers Expected to Result in Lower Market Prices
						 \| The Pig Site](https://feedsoft.ai/events/4731-higher-us-hog-numbers-expected-to-result-in-lower-market-prices-the-pig-site.md) | -0.8% | -10.2% |
| HOGS | 2016-12-28 | [Hog prices fall on USDA report of unexpectedly large hog herd - AgCanada](https://feedsoft.ai/events/73604-hog-prices-fall-on-usda-report-of-unexpectedly-large-hog-herd-agcanada.md) | +0.2% | +8.4% |
| HOGS | 2022-03-15 | [USDA GAIN Report: China pig production to exceed 2021 levels, prices remain low in 2022
						 \| The Pig Site](https://feedsoft.ai/events/42292-usda-gain-report-china-pig-production-to-exceed-2021-levels-prices-remain-low.md) | -0.1% | -1.9% |

## Sources

- caiwennews.com: https://www.caiwennews.com/article/1686490.shtml

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