Changes in Hong Kong stocks | Makiyuan Co., Ltd. (02714) fell by more than 3%. Pig prices are in the phase of fluctuation and bottoming out, delaying the implementation of pig sources and secondary education or increasing supply pressure

The Zhitong Finance App learned that Muyuan Shares (02714) fell by more than 3%. As of press release, it was down 3.6% to HK$31.62, with a turnover of HK$5.14 million.

According to the news, pig prices have entered a pullback channel since mid-July, and prices are in a phase of fluctuation and bottoming out after falling back from a high level. As of July 31, the average price of three-yuan pigs sold nationwide was 10.28 yuan/kg, down 1.11 yuan/kg from the high in early July, or 9.75%. Open Source Securities believes that looking ahead to the future market, short-term fertilizer price differences are strong and retail investors are reluctant to sell or provide some support for pig prices, but the July deferred pig supply, the August planned increase in large-scale farms, and the early second pig breeding source will all limit the room for price growth.

However, in the July Politburo meeting, the relevant statement on the pig breeding industry was expanded from “stabilizing the prices of agricultural products such as pigs” at the April meeting to “stabilizing pig production and prices.” China Investment Securities believes that this may mean that the focus of the policy extends from “price” to “production.” The bank expects that under the double pressure of policy guidance and market-based losses, pig farming production capacity is expected to accelerate nonlinear decline. Considering that active sows have continued to degrade drastically since 26Q2, and it takes about 10 months for sow production capacity to be transferred to commercial pigs, 27Q1 may be an inflection point for pig breeding profits.