Has a good opportunity for big pig farmers to enter the market for half a year after the hog futures is listed?

In the six months since the live pig futures went public, more and more big pig farmers have begun to end their markets

More and more pig companies are testing the water

Since the listing of live pig futures on January 8 this year, the enthusiasm of pig companies to enter the market has only increased

DCE told a reporter from China Business Daily that the price of live pigs has fallen sharply since June, and the industry and companies have a better understanding of the role of the futures market.

For pig companies, the current price of live pigs has fallen below the breeding cost line, and participation in live pig futures transactions may reduce losses

It is worth noting that the current downward trend in hog futures prices has not stopped, and risks still exist

DCE told a reporter from China Business Daily that DCE will learn from the risk prevention and control systems of other mature species, combine the rules of the live pig spot market, and strictly design the price limit, margin, position limit, transaction limit, etc.

Big pig farmers "cross the river by feeling the stones"

In the futures market, big pig farmers are still "crossing the river by feeling the stones

At present, pig companies are also trying to trade futures, but they have not yet invested a lot of costs

"The leading companies are waiting to see the effect of the completion of the first major contract delivery in September

Live pig futures trading volume may increase around September

The current price of live hog futures is falling, gradually approaching the spot price of live hogs

With the narrowing of pig farming profits, the enthusiasm of pig companies for hog futures may increase

After September, the willingness of pig companies to enter the market may increase

Zhou Xiaoqiu, chief researcher of agricultural products at Guotai Junan Futures, said that the spot price of live pigs fluctuated sharply in the past six months, but compared with the basis of September futures contracts, it has shown a trend of narrowing.

Feng Yonghui, the chief analyst of China Live Pig Warning Network, said that at present, the price of live pigs in China fluctuates greatly, which has brought losses to both producers and consumers.