whitebass| Strong pig prices increase piglet profits increase limited growth and risk of decline

News summary

Pig prices have fluctuated strongly since MarchwhitebassBreeding costs have dropped, and piglet fattening profits have increased. Profits reached an annual high of 444 on April 15.whitebass.63 yuan/head. The average transaction price of live pigs in May rose by 1% year-on-yearwhitebass.73%, but June earnings may be affected by increased supply and off-season demand, and face a decline risk.

Newsletter text

[Strong pig prices drive an increase in piglet fattening profits] Since March 2024, pig prices have remained volatile and rising. Thanks to the decline in breeding costs, the profit from piglet fattening has also increased. However, the rise in piglet prices and the possible increase in the source of secondary fattening pigs in June have put limits on the continued rise in pig prices, which may lead to a downward trend in piglet fattening profits. Since entering March, piglet fattening profit has transformed from loss to profit, and reached a high of 444.63 yuan/head on April 15. Compared with the low point in early March, the profit level has increased significantly by 542.19 yuan/head. The increase in earnings is mainly due to the high operation of pig prices and relatively low costs. The strong trend of live pig prices is partly driven by the slow rise in temperature after the Spring Festival, the widening of the price difference between fertilizers and fertilizers, and the behavior of breeding companies to increase weight. These factors jointly lead to a contraction in supply, which in turn supports it.whitebassThe price of live pigs. Monitoring data shows that the average trading price of Sanyuan live pigs abroad from March to May was 14.96 yuan/kg, an increase of 1.73% year-on-year. In addition, the average price of piglets in the fourth quarter of 2023 was 185.74 yuan/head, a month-on-month decrease of 42.13%, and feed costs were also at a low level, which provided strong support for the increase in piglet fattening profits. However, the low consumption season in June and the poor inventory of fresh sales and frozen products by slaughtering companies made the long-term support for pig prices and breeding income fragile. At the same time, the increase in breeding pressure and secondary breeding popularity in May led to an early increase in pig prices, which may limit the room for increase in pig prices in June. In addition, as piglet prices rise significantly from December 2023 to January 2024, pig breeding costs increase, which is expected to exert downward pressure on piglet fattening profits.