Pig price rebound, the pig cycle is here?

Author:Xiaoping Finance Time:2022.07.13

In addition to the rise in ice cream recently, pork prices have also risen significantly.

According to statistics, the price of pork in 22 major provinces and cities rose from 9.46 yuan/catties in April to 14.2 yuan/catties on July 10, an increase of more than 50%. Many pig companies such as Muyuan, Wen, and Xin hope have recently risen sharply. On July 11, multiple stocks in the pig sector reached the high point in recent months.

The pig cycle is actually an economic phenomenon. When the price of pigs rises, farmers will expand production capacity on a large scale. The quantity of the column rose. The price will fall. When the price falls, farmers will reduce breeding, and pork supply on the market will decrease. Pig prices began to rise again.

The pig cycle happened every 3 to 4 years, and the pig cycle in the previous round occurred from November 19 to January 21. The last round of the pig cycle was mainly de -capacity caused by plague. The time to de -capacity is slower than before. And with the price of feed rising. The price is relatively easy to hold, and pig prices will definitely run high in the second half of the year. What are the reasons

1. Summer is not the main season for eating pork. The tonic of autumn and winter is superimposed to the Spring Festival. The demand for pork will be further improved.

2. The epidemic controls the stimulus policy of consumption one after another, which has a relative support for the price of pork.

3. In addition to production capacity, the price of pork is also related to many aspects. Now the price of corn prices and even seeds is relatively high. This is also a support for pork prices.

4. Many farmers are in the same field and want to blog at a high price. Will it lead to large -scale storage and the price of pigs fell again. I don't think it is. Storage is a people's livelihood policy, and it is also costly to consider the depository. The pig is too big to eat food. It is not very good. It is not cost -effective. Once the price appears, there will be selling farmers.

There is also an important point. If the farmers start to expand capacity now? The breeding time of pigs is almost 4 to 6 months. The expansion of the scale mainly depends on the depository of adult sows. Normal sows take 10 months to start breeding.

Therefore, if the price of empty pigs in the second half of the year is actually a less wise choice.

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