Live hog RMB prices in China plunged by around 30 percent in the first quarter, in one of the steepest declines ever recorded, after a significant increase in production by new farms.

The falling price led some farmers to send more hogs to slaughter amid worries prices would come under further pressure later in the year. Total China’s port output rose 2.1 % to 15.4 million tonnes in the 1st quarter compared with the same period of year 2017.

We foresee live hog RMB prices is continuing moving downward in coming season which caused demand of all kinds of protein meal slowing down as well.

For Peruvian fishmeal (super prime ) quality, it dropped over RMB 800mt in a month to RMB 12,400/mt level today.  Also, animal protein is over supply at this moment in Chinese market due to demand totally slowing down.  Generally speaking, market entering April is much softer in comparison with Feb/March.  Mainly because Chinese users are expecting protein ingredients price is going to further drop so that they just delay entering market.