The gap between supply and demand is narrowing. Will there be a sharp drop?

In the first half of this year, pig prices continued to rise, while bulk feed prices dropped sharply, pig-raising benefits continued to pick up, and many farmers have basically made up for last year's losses. However, in the face of such a good market trend, many farmers did not take advantage of the victory and made up a large number of hurdles.

Many farmers said: on the one hand, due to the existence of the pig market pig cycle, worried that after expanding production capacity, they would encounter a decline in the market and lead to losses, so most of them still maintained the original production scale, and everyone said that the huge losses in 2014 were too unforgettable. and the pig industry is undergoing transformation, but also do not know the direction. On the other hand, as the environmental protection raises the threshold of raising pigs and the technical requirements of raising pigs are getting higher and higher, many pig farmers are waiting to see whether they can bear these changes.

To tell you the truth, pig prices will eventually usher in a downward channel, because the most fundamental factor affecting pig prices is in stocks, so with the recovery of pig stocks, a substantial decline in pig prices is inevitable. However, at least this substantial decline will not occur now, and there should not be a sharp fall in the rest of the year. Therefore, in the face of the general fall in pig prices across the country this week, farmers must look at the market rationally and stop selling.

At present, the north still continues the selling pattern, especially the northeast region has ushered in the price of 8 yuan, and some areas even fell below 8 yuan yesterday. We know that pig prices will only fall more and more, falling more and more, and we can only rely on us pig farmers to stop this strange circle. After all, the overall pattern of oversupply has not been formed. Due to the rapid spread of information and the rapid spread of the decline, it is difficult for farmers to distinguish between true and false, and many people blindly follow the trend. In fact, the drop of 1 yuan has been so great that even pig brokers and slaughterhouses are surprised. Therefore, farmers should return to reason and wisdom, and do not hurt themselves.

At the same time, for the current pig market, industry insiders said that although the recovery process of production capacity is slow, the relationship between supply and demand has not been reversed, but the gap between supply and demand is already narrowing, farmers still have to objectively deal with ups and downs, rational hurdles and supplementary hurdles.