China's pig prices fell in late July as supply remained abundant and demand stayed weak, with the benchmark live hog price at 10.4 yuan per kilogram, down 5.5% from mid-July, according to Jiemian News. The National Bureau of Statistics said late-July prices for live hogs in China's circulation sector also declined from mid-July.

The Ministry of Agriculture and Rural Affairs said the national live hog price averaged 11.22 yuan per kilogram in the week of July 27 to August 2, down 2.0% week on week, while pork traded at 20.90 yuan per kilogram in farm markets, down 0.3%. Wholesale pork averaged 15.81 yuan per kilogram, down 0.8% from the previous week and 22.7% lower year on year.

Officials and analysts said hog producers and slaughterhouses sped up sales, procurement and slaughter, while hot weather and the seasonal off-peak for consumption weighed on prices. Zhu Zengyong of the Institute of Animal Science and Veterinary Medicine at the Chinese Academy of Agricultural Sciences said pig prices may recover moderately in the second half, but supply is still loose and demand remains weak.

China's breeding sow inventory stood at 37.8 million head at the end of the second quarter, down 3.2% from the previous quarter and 6.5% from a year earlier, close to the 37.5 million head control target and the lowest level in nearly five years. Total pig inventory was 424.91 million head, up 0.3% quarter on quarter and 0.1% year on year.

Zhang Di, a senior analyst at China Galaxy Securities Research Institute, said the spread between fattening and standard hog prices widened in late June after breeders cut weight and accelerated shipments, briefly supporting prices, but seasonal demand weakness and limited slaughterhouse restocking kept upward momentum subdued. Hualong Futures said supply pressure has eased marginally, but demand support remains limited; it expects the market to stay range-bound for now and see a real rebound in the fourth quarter.