Commodities

China to hold second auction of pork reserves

Credit: REUTERS/THOMAS PETER

China will auction 10,000 tonnes of imported pork from its state reserves on Sept. 26, according to a notice from the China Merchandise Reserve Management Center on Tuesday.

China to auction 10,000 T of frozen pork on Sept. 26 - notice

Imported volumes are from countries including U.S., Germany

Sale comes ahead of Oct. 1 holiday, after 1st auction last week

Adds background

BEIJING, Sept 24 (Reuters) - China will auction 10,000 tonnes of imported pork from its state reserves on Sept. 26, according to a notice from the China Merchandise Reserve Management Center on Tuesday.

The auction of frozen pork is the second to be announced so far this month as China, the world's biggest consumer of the meat, looks to ease supply shortages and price spikes caused by the spread of African swine fever through its hog herd.

China's retail pork prices were up more than 80% year-on-year at 41.90 yuan ($5.90) per kg in the second week of September, while wholesale prices have also risen 80.9% to 36.39 yuan per kg.

The latest auction follows an earlier sale of 10,000 tonnes of reserve pork on Sept. 19, the results of which have not been made public.

It also comes in the week before China celebrates its National Day on Oct. 1, the start of a seven-day holiday in the country which sees many Chinese go out to eat in restaurants.

The meat on offer in the latest auction is from Chile, Denmark, France, Germany, the Netherlands, the United Kingdom and the United States, according to the notice.

($1 = 7.1027 Chinese yuan renminbi)

China retail pork prices surge 80% from a year ago as African swine fever (ASF) spreadshttps://tmsnrt.rs/2lgKnsB

China's pig herd shrank by 38.70% in Augushttps://tmsnrt.rs/31BjJed

(Reporting by Tom Daly and Lusha Zhang; additional reporting by Shivani Singh; editing by Christian Schmollinger and Louise Heavens)

((tom.daly@thomsonreuters.com; +86 10 5669 2119;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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