Pork purchased by China for state reserves

China is starting to stockpile pork again as the government tries to keep prices in check. China's Ministry of Commerce has just announced that it has purchased 30,000 tons of pork. Pork will go to Chinese government reserves. The announcement immediately saw pork record an 8% increase in futures prices. In particular, pig livestock prices on the Dalian Stock Exchange rose to 15,285 yuan ($ 2,374.44) per tonne at the end of Monday, October 11. This is the largest increase since the market was established in January. It also represents the highest increase in pork futures since the market crash earlier this year. In the first nine months of 2021, pig prices in China fell by 65%. Thus, the Chinese government maintains its strategy of keeping pork prices down after the collapse this year, which has caused heavy losses for its producers. The data confirms that government hoarding of pork contributes to the pricing strategy China was pursuing when it announced in June that it would use ...