China Pork Prices Jump 116% in Jan. Analysts Expect CPF to be the Prime Beneficiary!

Pork prices in China jumped 116% in January when compared to the same period of last year, which accelerated from a 97% increase in December 2019, reported the National Bureau of Statistics of China.

The bureau said that an outbreak of African Swine Fever (ASF), which caused the country to mull a great number of hogs last year, and increased demand from the Lunar New Year, though not as lively as last year due to the contagion of coronavirus.

Due to these reasons, China’s food prices were reportedly increased by 20.6% in January when compared to the same period of last year.

 

Analysts expect Charoen Pokphand Foods Public Company Limited (CPF) to benefit from the increase in pork prices in 4Q19 and 1Q20 in January, coupled with baht depreciation for exports.

Moreover, KTB Securities (Thailand) believed CPF will be the prime beneficiary of the H5N1 outbreak in China and Vietnamese swine prices will likely remain at a high level in the long term (VND8-90,000/kg, increased 83% from VND49,000 in 4Q18 and +62% from VND55,000/kg in 3Q19).

 

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