On July 2nd, Financial Associated Press (Editor Zilong) reported that the 6th China Swine Science Conference (CSSC 2024) will be held from August 5th to 7th in Yantai, Shandong. The conference will focus on "disease prevention and control", "genetics and breeding", "nutrition and feed", and other fields, aiming to provide cutting-edge solutions to key issues in the development of the pig industry. In addition, the conference will hold several special symposiums on hot topics, including "pig disease prevention and control cases", "farming production management", "industry development and industrial economy".

Since the beginning of this year, pork prices have generally been rising, but due to weak consumption demand in the off-season caused by high temperatures in summer, pork prices have recently seen a partial correction. According to monitoring data from the Ministry of Agriculture and Rural Affairs, as of 14:00 on July 2nd, the average wholesale price of pork in the national agricultural product market was 24.37 yuan/kg. In terms of futures prices, as of the close of July 2nd, the main pig contract closed at 17,790 yuan/ton, hitting a new high in nearly half a month, with a slight increase of 0.96% for the week and a total increase of nearly 3.1% in the past week.

Note: recent trend of the main pig contract (as of the close of July 2nd)

GF Securities recently reported that the effect of capacity elimination is gradually emerging, with the level of pig inventory decreasing significantly, and pig prices rebounding in the second quarter. The industry is currently back to a profitable range, and it is expected that the overall supply in the industry will continue to decline in the third quarter. With the seasonal recovery of subsequent demand, it is bullish on the performance of pig prices in the third quarter. Benefiting from the previous downward trend of raw material prices and the improvement of epidemic prevention efficiency, the cost of slaughtered pigs has entered a rapid downward channel. During this round of increase, the industry is expected to benefit from the "scissor difference" between the upward trend of pig prices and the downward trend of costs, and the overall level of profitability is expected to exceed market expectations.

In terms of potential targets, screening pork concept stocks, a total of 11 stocks have been visited by more than 100 institutions since the beginning of this year. Among them, Wens Foodstuff Group ranks first with 532 visits by institutions. In addition, Leshan Giantstar Farming & Husbandry Corporation, Guangdong Haid Group, New Hope Liuhe, Tangrenshen Group, Shennong Rural Commercial Bank, Guangdong Guanghong Holdings, DongRui Shares, Shenzhen Kingkey Smart Agriculture times, Muyuan Foods, and Beijing Dabeinong Technology Group are also attracting key attention from institutions this year.

Note: Pork concept stocks with high institutional research visits this year (as of the close of July 2nd)