(Yicai Global) July 5 -- As the price of live pigs surges to a recent high, China’s macroeconomic planner convened a meeting of industry players yesterday to warn them not to hoard stock, inflate prices nor collude to raise prices.

The dominant hog futures contract jumped by the daily limit yesterday to CNY22,755 (USD3,399) per ton, the highest level since May 2021. Last September, the contract had been as low as CNY13,500 per ton.

And the price of live pigs soared 11.6 percent at the end of June from the middle of the month to CNY18.30 (USD2.70) per kilogram, according to the latest data from the National Bureau of Statistics.

One of the main reasons behind the recent rapid rise in pig prices is due to irrational hoarding of hogs and a reluctance to sell, the Price Department of the National Development and Reform Commission said. Some media reports have fabricated price increases and spread false information, intensifying the market’s hesitance to offload stock.

There is no basis for a sustained rise in prices as there is sufficient supply and consumption is not strong, it said. Storing live hogs may lead to a rapid decline in prices at a later stage, which is not conducive to normal business operations and the long-term healthy development of the industry, it added.

The regulator will closely monitor supply, demand and prices of the live pork market and take action against those companies that inflate prices, it said. If necessary, it will arrange one-on-one meetings with key suppliers, the National Business Daily reported, citing a person who attended the meeting.

Editor: Kim Taylor