In early July, the second fattening outflow in the northern market was generally moderate, with more supplementation than outflow. The increase in the second fattening in addition to the beginning of the month slowed down the market supply rhythm, and the pig price shook up.
Zhixin Finance and Economics APP learned that Huafu Securities issued a research report saying that in June 21-30, the sales volume of the second fattening accounted for 3.88%, an increase of 0.81 percentage points from the previous ten days.
Huafu Securities' main points are as follows:
Hog farming: Pig prices have risen again, and the prospect of the pig cycle is bullish.
At the beginning of the month, the supply rhythm slowed down, and pig prices rose slightly. When the prices in some areas fell to around 17.5 yuan/kg, the enthusiasm for the second fattening increased.
Terminal white strip sales were not good, and the slaughter volume of slaughtering enterprises was low but fluctuating.
Affected by the increase in the second fattening, the average weight of pigs has decreased.
Due to tight supply, feed sales in June decreased year-on-year.
At present, the speed of industry supplementation has slowed down, and the profit time of this round of cycle is expected to be prolonged.
White-feathered broilers: The restriction on imports is gradually transmitted, and the prosperity of White feathered broilers is improving.
During the off-season of seasonal supplementation, seedling prices continued to hit bottom.
The supply and demand pattern is expected to improve in the second half of the year, and the price of broilers is expected to rise.
Recommend paying attention to Fujian Sunner Development Co., Ltd., Shandong Minhe Animal Husbandry Co., Ltd., and Shandong Yisheng Livestock & Poultry Breeding Co., Ltd.
Seeds: The revitalization of the seed industry has been emphasized again, and policy will promote the achievement of another landmark in 2025.
On June 7th, the Ministry of Agriculture and Rural Affairs held a video conference to summarize the progress and effectiveness of the "Three-Year Foundation" stage of the action plan for promoting seed industry revitalization, and to conduct research and deployment on speeding up the revitalization work, pushing the substantial progress in seed industry revitalization towards the goal of "seeing results in five years". The meeting emphasized accelerating seed industry innovation and breakthrough variety cultivation, focusing on supporting the development of advantaged enterprises, and ensuring that a new batch of landmark achievements will be obtained by 2025. On February 3rd, the first central document of the year pointed out the policy of "accelerating the action plan for promoting seed industry revitalization and promoting the industrialization and expansion of biological breeding", providing strong support for the industrialization of biological breeding. At present, multiple genetically modified varieties have been formally authorized in China, and the commercialization of genetically modified products will promote the expansion of market space and the improvement of industry concentration, enabling leading seed companies to fully benefit from their first-mover advantages.
We suggest paying attention to Beijing Dabeinong Technology Group (002385.SZ), Yuan Longping High-Tech Agriculture (000998.SZ), Shandongdenghai Seeds (002041.SZ), and Winall Hi-Tech Seed (300087.SZ).
Risk Warning: Outbreak of animal diseases, fluctuation in commodity prices, natural disasters, and other risks.