As of the closing on January 10, 2022, the Shanghai Composite Index rose 0.39% to 3593.52 points, the Shenzhen Composite Index rose 0.44% to 14406.97 points, and the gem index fell 0.04% to 3095.69 points. The industry sector rose more and fell less. A total of 3105 stocks rose and 1428 fell in the market. More than 90 stocks in the two cities rose by 10% or more.
In terms of sector performance, medical devices, agriculture, animal husbandry, fishery, electronic chemistry and other industries led the increase, while photovoltaic equipment, mining industry, wind power equipment, petroleum industry and other industries led the decline; Huawei Euler, muscle concept, pork concept and other concept sectors led the increase.
As of today’s close, pork stocks continued to strengthen, with 33 rising and 3 falling. Among them, Shenzhen Kingsino Technology Co.Ltd(002548) , Tangrenshen Group Co.Ltd(002567) , Hunan Xiangjia Animal Husbandry Company Limited(002982) , Wellhope Foods Co.Ltd(603609) rose sharply, and Fujian Aonong Biological Technology Group Incorporation Limited(603363) , New Hope Liuhe Co.Ltd(000876) , Jiangxi Zhengbang Technology Co.Ltd(002157) rose sharply.
Before September 2021, pig prices remained low, with a minimum of 11 yuan / kg; In November, the price of live pigs reached 18 yuan / kg. As of January 7, 2022, the average price of Chinese pigs was 15.4 yuan / kg, with a month on month decrease of nearly 15% and a year-on-year decrease of more than 50%.
In the face of the continuous decline of pig prices, the pork sector has strengthened, Tianfeng Securities Co.Ltd(601162) said that the bottom of pig prices has now appeared and is expected to reverse in the middle of this year. In the future market of the sector, Guotai Junan Securities Co.Ltd(601211) believes that the expected improvement of cycle reversal will continue to accelerate and grasp the breeding gold allocation period. Under the three cycle resonance of supply, demand and inventory, the weakening pig price in the first quarter will become an important catalyst. Pig breeding is recommended at the core, followed by other breeding poultry breeding, feed and animal protection in the breeding industry chain.
However, some institutions are bearish on the future market. Guodu futures believes that due to the pessimistic expectation after the year and the increase in sales near the Spring Festival, the current supply pressure is large and the spot is highly limited. It is recommended to continue to hold the hedging short order carefully. Ruida Futures Co.Ltd(002961) believes that slaughtering enterprises have the phenomenon of price reduction. On the supply side, there are few marketing plans at the beginning of the month. However, affected by the low price, retail investors have high enthusiasm for marketing and suppress the price of pigs. From the perspective of futures, the increase of pig price is downward, mainly with a slight negative decline, and we will wait and see for the time being.
(source: China Economic Weekly)
