The listing of live pig futures may affect pork prices, but it cannot determine the rise and fall of pork prices in the market. The price of pork is mainly determined by the supply situation in the pork market. When the pork market is abundant, the price will be stable, otherwise, it will go up and down. I think the national pork reserve is the main mechanism to adjust the market price. Then, this year's pig crash may be mainly caused by the epidemic.
In fact, the demand has not decreased, but the transportation cost has increased because of transportation problems. Generally speaking, this year's country still has to find a way to digest most of its stocks. Due to the pessimistic attitude towards the market, pig farmers' associations in various countries have a cautious wait-and-see attitude towards this year's breeding. The surge in feed is probably due to insufficient production, transportation and supply of raw materials during the epidemic.
Generally speaking, there are two ways: the first way is to gamble and raise some in batches. Our epidemic situation is well controlled, and domestic demand will continue to open. Imported pork is facing obstacles, and local supply will become the mainstream. However, limited by the epidemic disease feed, the risks and benefits will not be maximized.
Second, raise more sows and boars and raise them according to the idea of selling piglets in August. It is almost certain that the selling price of piglets will soar in August and September. At the same time, the time difference is calculated to ensure that a large number of live pigs will be slaughtered in September to seize the market. There is also to ensure the stock, it is estimated that there will be subsidies, and the amount is large.