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The Wall Street Publication > Blog > Markets > How to Tame China’s Wild Pork Price Cycle
Markets

How to Tame China’s Wild Pork Price Cycle

Editorial Board Published October 29, 2021
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How to Tame China’s Wild Pork Price Cycle
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After a rollercoaster-like two years, pork prices in China have come back to earth. Price swings have been magnified by two health crises—African swine fever and Covid-19. But the collateral damage to small farms could actually make for a somewhat less wild price cycle in the future, as the slow consolidation of China’s massive pig-rearing industry takes another step forward.

Hog futures in China have risen more than 20% from last month’s low, signaling a reversal of the sharp decline earlier this year. But that still leaves them far below the heady levels of 2019 and 2020. Hog prices have fallen by nearly two-thirds since January thanks to a one-two punch of oversupply and the low season for demand.

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