The Chinese government will again purchase pork from local farms and traders for reserves in an attempt to boost weak domestic hog prices, according to the report by Bloomberg.
Amid concerns mounting over deflationary pressure in the country, Beijing has reportedly conducted two rounds of buying this year to ramp up its stockpiles. The scheme was a success in some ways as hog prices rose in July after the buying, but started to fall again in early August.
Bloomberg cited a notice from the National Development and Reform Commission’s official WeChat on Friday, stating that related departments will start collecting and storing pork for reserves to raise prices to a level it deems reasonable.
According to the data from the Dalian Commodity Exchange, hog futures traded at 15,380 yuan a ton this afternoon in local time. This reflected a 20% drop from last year.
