According to the monitoring of the national development and Reform Commission, in the week from February 21 to 25, the national average pig grain price ratio was 4.98 ∶ 1, entering the level-1 early warning range of excessive decline determined in the working plan for improving the regulation mechanism of government pork reserves and ensuring supply and price stability in the pork market. The national development and Reform Commission, together with relevant departments, will immediately start the collection and storage of the central frozen pork reserve and guide all localities to actively collect and store.
Zheshang Securities Co.Ltd(601878) analysts believe that pig prices will probably rebound slightly in the short term after each start of pork collection and storage, but they will basically continue the downward trend in the end. Considering that the feed costs such as corn and soybean meal remained high in the first half of the year, the capacity of the industry may be accelerated under the deep loss, or the bottom rebound of pig price may be seen in the second quarter, and a new round of cycle reversal.
According to the theme database of financial Associated Press, among the relevant listed companies:
Muyuan Foods Co.Ltd(002714) is a leading enterprise in pig breeding. It has established an industrial chain integrating feed processing, breeding, breeding, commercial pig breeding, pig slaughtering and meat processing, with a market share of 6%.
Leshan Giantstar Farming&Husbandry Corporation Limited(603477) an integrated breeding enterprise focusing on pigs. The company is expected to achieve counter cyclical expansion with its cost leadership and capital comparative advantage.
