Corn prices rise and pig prices fall pig prices are expected to bottom out in March and April

2022-05-13 0 By

Affected by external factors, since late February this year, corn spot prices have risen sharply.In early March, corn futures in Chicago surged to their highest level since 2013.In addition to the rise in the price of bulk agricultural products, pig prices continue to decline has also attracted attention of the breeding industry.Industry insiders forecast that pig prices could fall to around rmb12 per kg in March and April.Hu Zucai, vice chairman of the National Development and Reform Commission (NDRC), said at a press conference held by the NDRC on March 7 that China is fully self-sufficient in rice, wheat and other grain stocks, and the supply is sufficient.At the same time, we will step up efforts to ensure the supply and price of corn and soybeans, tap domestic potential, and vigorously implement projects to increase the production capacity of soybeans and oilseeds.On March 8, the National Development and Reform Commission (NDRC) announced that it and relevant departments started the second batch of central frozen pork reserve collection and storage work.At the same time, breeding enterprises actively seek a variety of ways, and strive to tap the potential of feed cost reduction, to achieve the overall breeding cost reduction.Aquaculture market: Facing the double pressure of rising raw material costs and low pig prices, in early March, influenced by external factors, the agricultural market of The United States, Wheat and wheat trading limit, corn, soybean followed up, Chicago corn futures prices soared to the highest level since 2013.Meanwhile, according to Li Jiwen, a pig analyst at Zhongzhou Futures, domestic feed raw material prices have risen sharply since November last year, with soybean meal rising from 3,300 yuan/ton to 5,000 yuan/ton, an increase of about 51%.Corn rose from 2,580 yuan/ton to 2,800 yuan/ton, up about 8.5%.As the price of feed raw materials rises, the cost of fattening pigs increases.Tang Renshen’s announcement at the end of February pointed out that due to the large increase in corn and soybean meal prices from last year to this year, as well as other raw materials, the production cost of the feed industry has risen about 500 to 650 yuan per ton, and the feed cost of the pig industry has risen about 1 yuan/kg.In addition to the rise of raw materials, low pig prices are also the plight of the breeding industry.After the Spring Festival, terminal demand declines, pig prices fall, the market continues to be weak.In early March, the Ministry of Agriculture and Rural Affairs announced on its official website that it held a symposium on pig enterprises in Jiaozuo, Henan Province, to analyze and judge pig production and price trends, and to listen to the opinions and suggestions of breeding, breeding, feed, slaughtering and processing enterprises and local agricultural and rural departments on stabilizing pig production.Meeting that, after the Spring Festival pork into consumer off-season, to numerous sow breeding stock despite reasonable has callback to green area, but still live pig market inertia, pork prices in the downlink channel, combined with the bulk of feed raw material prices continue to rise, pig grain price has entered the excessive down level warning interval, the next two months prices downward pressure is still large.Enterprises to deal with: optimize the feed formula to sign long-term contracts to lock the price in advance, then, in the pig breeding industry cycle at the bottom of the situation, how to deal with the sharp rise in feed raw materials?In an investor relations record released at the end of February, Wen pointed out that, compared with small and medium-sized farmers, large producers often have an advantage in controlling feed costs.Wen’s shares disclosed that, on the one hand, give full play to the advantages of intensive mining, strengthen strategic procurement with large grain enterprises, predict the price trend of feed raw material products, sign long-term contracts, lock prices in advance.On the other hand, make full use of database advantages, a large number of superior raw materials.Energy materials such as corn are replaced by wheat, sorghum and rice/brown rice mixture.The company has been exploring low protein diet for many years. Protein raw materials such as soybean meal are replaced by miscellaneous meal.Another breeding company, Mokihara, said it has been taking various measures to reduce feed raw material procurement costs and improve profitability.The company will adjust the formula in time according to the trend of the food market, promote the low protein feed formula, reduce the feed cost;Adjust feed raw material purchasing strategy flexibly according to production demand and market situation, and reduce purchasing price by means of forward contract and other tools.At the beginning of March, In the latest investor relations activity record, Makihara Shares indicated that the current cost is about 15 yuan/kg, and under the condition of excluding the impact of food price changes, the company has periodically reached the full cost of 13 yuan/kg.Haida Group points out that under the overall business difficulties in the industry, the company continues to increase the input of raw material market research and feed formula technology research and development. The cost of bulk traditional products is leading, the differentiation advantage of subdivided products is obvious, and the product competitiveness is further enhanced.The company increases the investment in seedling, animal protection and the layout and construction of breeding service stations, further integrates the advantages of the industrial chain, improves the service system, and enhances the profitability of farmers and customer loyalty.Source: Guangzhou Daily