[Shenzhen Business Daily](Reporter Qiu Qingyue) On July 5, affected by the news that the National Development and Reform Commission “shot” pig prices, the A-share pork sector was differentiated. As of the close, Jingji Zhinong fell 9.94%, Delis, Shunxin Agriculture, Tianyu Ecology and other stocks were among the top decliners; the leading pork stock Zhengbang Technology hit the daily limit during the session, and finally closed up 8.77%, and Aonong Biology rose 4.35%.
In recent months, the hog market has continued to rebound and higher, and hog futures have set a new high since listing. According to the trend of live pig futures, the turning point of the current pig cycle was in March this year, and pig prices have entered an upward channel since April. In terms of spot, the wholesale price of live pigs reached a low of about 11.5 yuan/kg in March this year. Since then, the wholesale price has been rising, and the wholesale price has exceeded 22 yuan/kg in many places, basically confirming the bottom of this round of pig cycle.
The recent rapid rise in live pig prices has attracted the attention of the National Development and Reform Commission. In response to the recent irrational behaviors such as blindly pressing the stalls and reluctant to sell in the live pig market, the Price Department of the National Development and Reform Commission is studying the launch of the central pork reserve, and instructs the local governments to link the reserve in a timely manner to form a joint force of regulation and prevent the price of live pigs from rising too fast.
Pig-raising companies have also responded to this. Muyuan shares said on the interactive platform that in June, the company sold 5.279 million live pigs with a sales income of 8.754 billion yuan; in June, the company’s commodity pig prices showed an upward trend, with an average sales price of 16.53 Yuan/kg, up 11.16% from May. From the low point in April to the present, the market price of live pigs has shown a sustained and obvious recovery. Combined with the data of the Ministry of Agriculture and Rural Affairs and the duration of this pig price increase, it can be roughly judged that this pig price increase is mainly due to the marginal improvement of supply and demand. Not driven by pure emotions or short-term expectations.
Regarding the future trend of pig prices, Dongxing Futures believes that starting from July 2021, the number of breeding sows will be reduced, which corresponds to the realization period of the reduction of production capacity in the second half of this year. Superimposing the seasonal demand peak season in the third and fourth quarters, it is expected that the pig price will run strongly. Return to Sohu, see more
Editor:
Disclaimer: The opinions of this article only represent the author himself, Sohu is an information publishing platform, and Sohu only provides information storage space services.