Hong Kong Pork Sector Stocks Decline as Hog Prices Climb for Ten Days but Remain Below Industry Cost

Stock News07-08 15:28

Pork-related stocks in Hong Kong experienced a collective decline. At the time of writing, WH GROUP (00288) shares fell 5.91% to HK$7.8. MUYUAN (02714) shares dropped 3.66% to HK$31.1. COFCO JOYCOME (01610) shares decreased 1.9% to HK$1.03.

According to monitoring data from July 7, the national average price for lean hogs has reached 11.16 yuan per kilogram, solidifying its position above the 11 yuan mark. This marks the tenth consecutive day of price increases, with a cumulative surge of 19.2% since the low of 9.36 yuan/kg on June 26.

Industry sources indicate that the core driver for this ten-day rally remains on the supply side. However, it is noteworthy that the chairman of the pig industry branch of the Sichuan Animal Husbandry Association believes this round of price increases will not last long and does not signal a turning point in the hog cycle. "At this stage, the overall hog production capacity is still in surplus," stated Li Xiaoyong. He added that the industry as a whole is still operating at a loss, with the average farming cost around 12 yuan per kilogram. Even with the current hog price reaching 11 yuan/kg, farmers are still in a loss-making position.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment