The recent rise in pig prices and stock prices shows that on the one hand there are indeed fewer pigs in the market, and on the other hand it shows that everyone is optimistic about the future pig prices, and their expectations for the future market are particularly strong. African swine fever has accelerated the reduction of production capacity and the delisting of retail investors. At the same time, we have to say that the first purchase and storage of frozen meat was the trigger for the sharp rise in pig prices, although the purchase and storage ended with a low enthusiasm among slaughtering companies to participate and a high failure rate.
On March 13, the Huashang Storage Commodity Management Center issued the "Notice on Carrying out the Second Central Storage of Frozen Pork Collection, Processing and Warehousing". The second purchase and storage is coming again. Many people can’t help but ask, after the two rounds of pork purchasing and stockpiling, is the state stepping in to rescue the market, or is there really a shortage of pigs?
In fact, the shortage of pigs is real, and the frozen meat purchasing and stockpiling has indeed played a certain role. effect. Generally speaking, the second purchase and reserve will have a stronger boost to market prices than the first. However, the purchase and reserve volume in the previous two years was not large, and the impact was very small. As for whether the two collections have the intention to save the market, I think it can play the role it should play, but as for the rescue, it seems that it is not that powerful. After all, the volume is not large enough. The rise in pig prices is mainly caused by the lack of pigs. The subsequent surge was the result of a combination of factors such as price increases by breeding companies and farmers following the trend and reluctant to sell.