Well-known Chinese news site Sohu (NASDAQ: SOHU) recently reported that, since the end of December, pork prices have seen a significant increase across China, especially in Eastern China, Southern China and Southwestern China. The daily pork price increase rate reached 0.43 Chinese Yuan. The Imported pork price reached 36.02 Chinese Yuan (per half kilogram). In Northeastern China, the daily price increase reached 0.6 Chinese Yuan and the domestic pork price was almost 20 Chinese Yuan (per half kilogram). With the new year’s price hike, it is widely expected that the upcoming Chinese New Year (early February) will have another major increase in the price of pork. Many retailers now refuse to sell pork in hand and hope to make much more money by waiting just a few days, even if this means the breach of a contract where a compensation deposit was received. China is currently suffering a decline in imported pork volume due to the pandemic. Pork holds two thirds of Chinese meat market and its price significantly impacts the CPI (Consumer Price Index), which is a major indicator of an economy.
Source: Sohu, January 4, 2021