According to the Huatai Securities Research Report, as of November 9, the average price of pigs in Yongyi's country was 8.6 yuan/kg, falling below the previous low in the current cycle. Huatai Securities believes that the recent second decline in pig prices has exceeded market and industry expectations. The main reason is that the industry's supply and inventory pressure is still high and consumer demand is weak. The poor peak season for the pig breeding industry was basically established in the fourth quarter. Looking ahead to the future market, as pig prices and piglet prices hit their previous lows again, the industry's cash flow loss intensified, or the interpretation that could drive sow sow production capacity to exceed expectations, opening up room for long-term pig price flexibility and sustainability, yet sector holdings are still at a relatively low level. Huatai Securities reaffirms the layout opportunities in the pig sector.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.