This year's pig market has suddenly set off a frenzy of **, has it become a dark horse in the investment world? Let's slowly unravel the veil of this mystery.
Is the market reasonable? Some attribute this to a shift in market expectations, but in reality, the situation is far more complicated than that. First of all, the influx of money and the optimism of the market are two key factors driving hogs. Astute investors stepped in when the trough was a lethal tactic. The improvement in market sentiment has made the long-month contract particularly strong, which seems to indicate that the market will be promising in 2024.
However, we should not be overly optimistic. Due to the weakness of the consumer side, pig prices may still hover in the ** range. From a fundamental point of view, the reduction in the pig herd is not child's play. De-capacity has led to the shortage of live pigs, and the market demand for large-weight pigs is more urgent. Farmers are actively raising prices after the first month, and the industry has high expectations for pig prices in the second half of the year.
Do you think the market will be calm after the Chinese New Year? The rush of funds and the off-season of demand have led to the suppression of the first pig, but it is this pressure that has given birth to the recent price of live pigs. The reduction of breeding costs and the profit potential of forward contracts make breeding enterprises need to seize the opportunity, and high-level hedging may be a wise choice.
In this turbulent market, every decision can make or break a decision. The future of pigs will be a contest of wisdom and courage. ##