The demand for the peak season before the Spring Festival started slowly this week, and the average price of live pigs fell compared to the previous week.

This week, domestic pork prices initially rose slightly, followed by a continuous decline, with the average price for the week decreasing compared to the previous week. According to data from China Pig Farming Network, on January 30th, the price of pork was 12.52 yuan/kg, down 3.2% from 12.93 yuan/kg the previous Friday. Looking at the weekly average price, the average price of pork this week was 12.81 yuan/kg, down 2.3% compared to the average price of 13.11 yuan/kg last week. Guosen Futures believes that based on the previous data on piglet births and the production and sales volume of pig feed, the theoretical number of domestic hogs slaughtered in the second quarter remains high; based on the inventory of breeding sows, the rate of capacity reduction in the fourth quarter of last year did not reach the policy control target, and attention should be paid to whether new policy guidance will be introduced later. In the short term, demand for the peak season before the Spring Festival is slow to start, and the high live pig inventory from the previous period of breeding and caging may be difficult to clear with the peak season before the Spring Festival window narrowing. This means that there will still be some pressure on digestion after the Spring Festival.