Guotai Asset Management flags accelerating sow herd cuts as pig cycle turns up

• Guotai Asset Management flagged a clearer upcycle in agriculture, citing simultaneous strength in livestock breeding and crop planting.
• Mysteel data showed August breeding sow inventory fell 2.94% m/m, versus a 0.62% drop in July, signaling faster capacity cuts.
• Persistent losses were cited as reinforcing further destocking, with weaned piglet prices near 149 yuan per head and weak restocking appetite.
• Guotai also pointed to firmer global agricultural prices and rising El Niño odds, lifting weather-driven supply risk for major crop regions.
• The analysis argued tighter livestock supply and improving crop-cycle expectations could lift sector sentiment as the two cycles converge.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Guotai Asset Management Co. Ltd. published the original content used to generate this news brief on September 04, 2026, and is solely responsible for the information contained therein.