News summary
Pig futures LH2409 rose 1.1 per cent this weekdoublesupertimesvideopoker.02%, and spot prices rose 7.77% year-on-year. The number of pigs in stock has decreased, and the supply pressure has been reduced. Corn futures C2407 increased slightly by 0.24%. Supply exceeded demand and price fluctuations were limited. It is recommended to hold multiple orders.
Newsletter text
[Pig futures and spot markets are rising simultaneously. Investors can pay attention to secondary fattening trends]
On May 20, LH2409, the main contract for pig futures, performed strongly during the week, eventually reaching a price of 18255 yuan/ton.doublesupertimesvideopokerThe price of 2010 closed, with a weekly increase of 1.02%. The national pig spot market also showed an upward trend, with the average slaughter price reaching 15.23 yuan/kg, a month-on-month increase of 2.16%, and a year-on-year increase of 7.77%. From a fundamental perspective, sales of pig feed declined month-on-month, indicating that the source of pigs in stock is decreasing. There is still pressure on the group market, but the admission of secondary fattening helps intercept part of the supply, so the market supply pressure has not been excessive. Due to off-season factors, the demand side's performance is relatively sluggish, and consumption is difficult to increase. As the temperature rises, the consumption of large and medium-sized pigs in the south is further limited, and pork consumption has not increased significantly. Frozen product stocks are slowly removed to the warehouse, and slaughtering companies are more cautious than the same period last year. Market sentiment shifted towards divinity, and spot prices unexpectedly rose, providing strong rising expectations for the market. Investors are advised to maintain long positions in 07 and 09 contracts and pay close attention to the continued dynamics of the secondary fattening market.
[The tight supply and demand in the corn market, traders are not willing to ship, driving prices to be strong]
This week, the main corn futures contract C2407 showed a narrow range of fluctuations. The closing price on Friday was 2459 yuan/ton, a weekly increase of 0.24%. The average national corn price in the spot market reached 2357 yuan/ton, up 16 yuan/ton month-on-month, but down 12.56% year-on-year. Data shows that as of May 17, the national grain sales progress reached 94%, including 95% in Northeast China and 90% in North China. Grain in the production areas has basically shifted to trade. During spring plowing and spring sowing, traders are bullish, resulting in a decrease in willingness to ship. Downstream feed companies are cautious about purchasing, maintaining inventories at about 30 days, and have no willingness to build large quantities of inventories. Market bullish sentiment has increased. Although deep-processing companies have increased purchase prices to stimulate supply, traders are still not willing to ship, resulting in a rapid decline in the inventory of deep-processing companies. To sum up, traders have become the main force in market supply. As the market consumes, supply has shown a downward trend in the later period. Although feed demand is sluggish, price fluctuations are limited. It is expected that the futures market will continue to fluctuate strongly. It is recommended to maintain long positions in the 07 contract.