We always say that pig and grain make the world peace. It means that the pig is an important agricultural products like grain. Our country has a strong power not only to the capacity of live pigs, but also the consumption of pork product. In recent years, the pig price has been widespread concern for its abnormal volatility.This article is based on the reference on the basis of related literature at home and abroad. The supply and demand equilibrium theory, elastic theory, volatility and cycle theory are used to explain how the pig price formation and fluctuation. Pig production and marketing are flourish in China. But hog prices fluctuate frequently. Live pig price fluctuation in our country are analyzed in detail in this article. Income level, population and consumption habits structure, number of alternatives, and season are demand factors. Pig breeding stock and output quantity, number of producers, and the scale of production, the production cost, production technical level and into exports are supply factors. National policy and natural disasters, epidemics, food safety events are accidental factors. These factors work together in pork prices. The article use these factors to build building the appraisal model of annual and monthly pig price respectively.The results showed that pig price is mainly affected by supply factors whether annual or monthly pig price volatility. Breeding stock for pigs, pig market volume, pig slaughtering rate and feed prices are these specific index. Macroeconomic environment positive can improve pork prices. Demand factors on the pig price impact is not big. This paper also puts forward several ideas on the pig price stability. |