From a consumer's point of view, to be honest, we don't feel the drop in pig prices now. However, when I saw this news report, I also read the relevant industry news and learned that this phenomenon will also occur in terms of expenditure, mainly because there is a futures product that is now delivered on the spot. The reason why there will be such futures delivery is mainly because the output of pork is gradually recovering. The reason why pork prices continue to rise is precisely because the market is in short supply. So let's discuss today, under the downward trend of pork prices, have enterprises started to connect?

First, these companies have begun to hedge.

As can be seen from the data given by the exchange, 23.2% of the company's customers held positions on the first day of listing. This means that on the first day of this futures, more than 1000 enterprises entered this market. Including many listed companies. Maybe everyone is not very sensitive to this data. You know, these enterprises have basically mastered more than half of the supply of live pigs in the current market. If even they enter the market of pig hedging, it shows that they have begun to realize the risk of falling pork prices.

Second, it cannot directly determine the decline in pork prices.

Although many people have begun to believe that the decline in pork prices has become a trend. But it is impossible to change this situation in a short time. At present, the situation of African swine fever has not been solved, and the production capacity in various places has not recovered. And our government is putting a lot of pork into the market now, in fact, because there will still be a shortage of supply in the market at present. At present, the price of pork in most cities is still higher than that in 30 yuan. Therefore, it is not advisable to avoid their own risks by short-term hedging. I hope you don't blindly go into the water.

Third, the decline in pork prices is not a straight line.

Many people think that the price of pork can be restored to a few years ago. But let's see the reality clearly here, that is, in this African swine fever, many factories are constantly upgrading. This requires a lot of costs, and these costs will eventually be amortized to our consumers in the production process. Therefore, although the price of pork may fall, it will still fluctuate. Moreover, according to the current industrial data, leading enterprises have not entered hedging.