First of all, we need to know what is called pig futures. Pig futures is the first live delivery variety in China, which has been officially listed and traded on Dalian Commodity Exchange. This kind of pig futures has a certain promotion effect on traditional pigs. With the official listing, the futures price is lower than expected, because the sales of traditional pigs are better. The traditional pig market is well supplied, which leads to the low price of pig futures varieties. However, as soon as it was listed, the price dropped. This phenomenon won't last long. With the coming of the Spring Festival in China, people's demand for pork will be higher and higher, so the price drop is only a matter of time recently.
First, the price of pig futures varieties will be higher and higher.
Why do you say that? The recent decline is due to the abundant quantity of traditional pork and the abundant market supply, which has affected the price of pig futures varieties. However, we must understand that the Spring Festival, the most festive festival in China, is coming soon. With the arrival of this festival, people will buy more and more meat, and the demand will increase. The quantity of traditional pork is definitely not enough. The price of pork will definitely rise in the later period, which will definitely drive the price of this pig futures variety to rise.
Second, the number of live pig futures is large and the foundation is solid.
Some professionals have analyzed that the number of pig futures varieties is very large, the connection is also very solid, and the meat quality is also very good. Although no one participated in the 1 session, the price fell, and because of the popularity of traditional pork, the price fell. But we must understand that the Spring Festival is coming, and the market demand for pork is growing. Without the supply of this pig futures variety, people are not enough to eat pork.
Third, the outbreak of the epidemic has a direct impact on the decline in pork prices.
Recently, the COVID-19 epidemic broke out in some areas. The outbreak of this epidemic has a great impact on pork prices. If people can't travel, the so-called consumption will decrease. If it is reduced, the storage of pork will be more, which will lead to a certain decline in the main prices on the market and the prices of traditional pork. What's more, the futures price of this pig will fall. Let's put it this way, the listing time of the pig futures is wrong, which coincides with the outbreak of the COVID-19 epidemic.