Purchase and storage of pork reserves on January 3 to stabilize its price in China

Published 2021년 7월 28일

Tridge summary

The Chinese government has purchased and stored 53,000 tons of pork in an effort to stabilize falling pig prices and boost market confidence. The strategy, which involves purchasing pork in auctions and storing it, has already had some effect, with pig prices halting their decline and slightly increasing. This is due to the anticipated peak pork consumption season in the second half of the year, where consumption is expected to surpass the first half. However, the pork price rebound may be limited, with factors such as the decrease in newborn piglets and large cold storage frozen meat inventories potentially putting downward pressure on prices.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Purchase and storage three times a month, this is the country's response to the drop in pig prices. A reporter from China Securities News learned that after three central reserves of pork purchases and storage by relevant departments since July, the current pig price has stopped its sharp decline and rebounded slightly from the end of June. Analysts believe that with the arrival of the peak pork consumption season, the second half of the year The overall pork consumption level has increased from the first half of the year, and it is expected that the pig price will return above the cost line. Accumulative storage of 53,000 tons for three times Since the beginning of this year, the live pig market has continued to weaken, and the industry as a whole has slipped into a loss. Judging from the performance forecasts or reports issued by listed companies in the recent interim report, Muyuan, Zhengbang Technology, New Hope and Wen's shares have shown "three losses and one drop". In order ...
Source: Chinaeconomy

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