News summary
The pig market is now reluctant to sellroulette, secondary fattening demand pushes up pig prices, consumption is weak, and spot and market trends are dividedroulette; Unilateral markets are cautiously bullish. The egg market supply is loose, demand is weak, spot prices fluctuate, and market prices are recommended to wait and see cautiously.
Newsletter text
[The supply side of the pig market is stabilizing and consumer side data becomes a key indicator] This week, the group's pig slaughter was in line with the monthly plan and remained stable. However, the pace of retail sales has slowed down and the mentality of reluctance to sell has intensified. Spot prices rose due to the high enthusiasm for secondary fattening, and slaughtering companies competed fiercely, creating a temporary situation in which demand exceeded demand. Although consumption remained weak this week, consumption is expected to weaken further in the future as prices rise. The entry of secondary fattening has increased pig prices, causing pressure on the consumer side, and a decline in slaughtering operating rates and strip shipment data. Spot and market trends diverge. Spot has risen sharply due to the impact of secondary fattening, while market is sideways. The market attaches great importance to the rise in pig prices on the consumer side. Although the current large demand for secondary fattening has raised prices, it may become supply pressure in the future. The 40 to 50 days of the secondary fattening cycle and the impact of excessive weight on supply prevented the September contract from following the rise of spot prices. If spot prices are pushed higher again next week by secondary fattening, it is expected that the market trend will be more volatile.
[Egg market supply is loose and demand is slowing down] Egg prices continue to rise, driving an increase in breeding profits, but the enthusiasm for elimination is reduced. Market terminal digestion is general, and slaughtering companies purchase on demand. Last week, the number of chickens sold dropped slightly, and the number of eliminated is expected to remain stable this week. The number of newly laid laying hens is slightly higher than the number eliminated, resulting in a small increase in the number of laying hens and relatively loose supply. After the rise in egg prices, traders 'risk aversion increased, food companies replenished warehouses on demand, market shipments slowed down, and all links passively accumulated warehouses. Coupled with the impact of storage problems, traders are expected to focus mainly on clearing inventory, and market demand continues to be weak. The rise in the prices of feed raw materials has supported egg prices, but the high temperature and humidity weather in the south has suppressed the rise in egg prices. The boost effect of the Dragon Boat Festival is weakening, market inventories may passively increase, and spot prices are expected to fluctuate. In the short term, disk prices are also volatile, so investors are advised to remain cautious.