Spot Dragged down, Pig Prices Fell

Disk situation: LH2109 closed at 24,950, -3.11% from the previous trading day; volume was 5,988; open positions were 12,311, -26.

News: 1 As of the week of May 7, the profit of self-breeding and self-raising pig breeding was 477 yuan/head, compared with 666 yuan/head the previous week, a 28% decrease from the previous week. The profit of outsourcing piglet breeding was a loss of 570 yuan/head, compared with a loss of 419 yuan/head the previous week. The profit of pig breeding continued to decline, among which the profit loss of outsourcing piglet breeding reached the lowest level in the past 7 years.

Spot market: quoted at Zhumadian, Henan, 19,800 yuan/ton, 0.

Warehouse Receipt Inventory: 0 lots of pig warehouse receipts, 0 lots. Main positions: the top 20 live pigs in the 2109 contract are long 7961,168 and short 8022,3. (Unit: hand)

Summary: The consumption boost on May Day is limited, and terminal consumption has fallen into a trough. In addition, the breeding end concentrated on selling, large-weight pigs were released for slaughter, and slaughter companies squeezed and purchased, which dragged down the price of pork. Coupled with the influence of imported meat and stocks of frozen meat, the supply of pork in the market is relatively sufficient. From the point of view of the spot, the short-term spot is still expected to be dominated by weakness in the context that the big pigs have not yet fully digested. In terms of futures, the current spot price difference is relatively large, and the main futures reflect an expectation of tighter supply in the future, but this news has basically been reflected in the disk. The continued decline in the spot market may be dragging down the trend of futures. On the disk, the price trend of live pigs was weak, and the intraday homeopathy was the main operation.

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