This week (2.28 ~ 3.4) focused on: the two sessions proposed to strengthen the regulation of pig production capacity and stabilize grain production and supply
[pigs] the average price of pigs this week was 12.36 yuan / kg, up 0.09% on a weekly basis; The average wholesale price of pork was 18.55 yuan / kg, down 4.43% on a weekly basis; The price of compound feed for finishing pigs was 3.70 yuan / kg, up 0.54% on a weekly basis. On February 28, the central frozen pork reserve collected and stored 40000 tons, which boosted the anti price sentiment at the breeding end in the short term, and the decline of pig price narrowed significantly. In his government work report on March 5, Premier Li Keqiang proposed to “strengthen the regulation of pig production capacity and pay close attention to the production and supply of livestock, poultry, aquatic products and vegetables.” The policy of stable production and supply of live pigs is conducive to promoting the healthy development of China’s breeding industry, and is beneficial to the leading enterprises and regional strong enterprises among the listed pig enterprises. At present, the inertia of pig stock remains high, the stock of breeding sows can be reduced in an orderly manner, the sector fundamentals continue to improve, the long-term low price can break the consistency of the pig market, and it is expected to bring about the deep secondary de industrialization of production capacity. We have repeatedly stressed that “financial stability” and “cost control” are the necessary prerequisites for the performance of breeding enterprises in this cycle. We suggest to actively pay attention to Wens Foodstuff Group Co.Ltd(300498) , COFCO Jiakang, Tangrenshen Group Co.Ltd(002567) and Tecon Biology Co.Ltd(002100) .
[seed industry] the spot price of corn this week was 2766.2 yuan / ton, up 1.23% on a weekly basis; The spot price of wheat was 3134.6 yuan / ton, up 7.61% week on week. In his government work report on March 5, Premier Li Keqiang proposed to “strengthen the stable production and supply of grain and other important Shenzhen Agricultural Products Group Co.Ltd(000061) crops, stabilize the sown area of grain, strengthen the field management of summer grain for late sowing of wheat, and promote the increase of soybean and oil production. Appropriately raise the minimum purchase price of rice and wheat.” At present, China’s total Shenzhen Agricultural Products Group Co.Ltd(000061) output is optimistic, but there is still room to improve the unit yield of major grain crops such as corn and soybean compared with the overseas advanced level. In particular, there is a large structural gap in oil crops such as soybean, which is greatly affected by international supply and price fluctuations. No. 1 central document, the government work report again put forward “accelerating the revitalization of seed industry, strengthening agricultural science and technology research and application, and improving the level of agricultural machinery installation” after China’s grain storage and grain and other major bulk Shenzhen Agricultural Products Group Co.Ltd(000061) low inventory. The fundamentals of seed industry are expected to improve in this policy window period. It is suggested to pay attention to high-quality seed enterprises ( Yuan Longping High-Tech Agriculture Co.Ltd(000998) , Winall Hi-Tech Seed Co.Ltd(300087) ) and transgenic technology companies ( Beijing Dabeinong Technology Group Co.Ltd(002385) ); It is suggested that high-quality planting enterprises ( Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) , Heilongjiang Agriculture Company Limited(600598) ) focusing on rice, wheat, corn and other crops will fully benefit from the double dividends of “cycle” and “growth” in the future, and the market share is expected to further increase.
[animal health insurance] in February 2022, the month on month growth rate of the number of batches of vaccines issued for pigs was from high to low: porcine parvovirus vaccine + 27.28%, classical swine fever vaccine + 22.73%, Pseudorabies Vaccine + 11.70%, foot-and-mouth vaccine – 21.31% and porcine circadian vaccine – 26.97%. Driven by the progress of non plague vaccine research and development, the prosperity of animal protection industry has gradually rebounded. It is suggested to pay attention to the leading companies with strong R & D strength and comprehensive product coverage ( Pulike Biological Engineering Inc(603566) , Jinyu Bio-Technology Co.Ltd(600201) ).
Risk warning: the slaughter volume of pigs is lower than expected Shenzhen Agricultural Products Group Co.Ltd(000061) price fluctuates sharply; The outbreak exceeded expectations.
