HK Stock Market Move | Muyuan Foods Group (02714) fell more than 4% in early trading. Supply-side increases outpaced demand-side increases, and pig prices came under pressure and moved lower ahead of the holiday.

Muyuan Foods Group (02714) fell more than 4% in early trading. As of press time, it was down 4.02% at HK$36.3, with a turnover of HK$25.3385 million. On the news front, as the Mid-Autumn Festival and National Day holidays approach, pig prices in the market have not improved despite the boost in demand. Since late August, domestic hog futures prices have continued to hit new lows. During intraday trading on September 22, the main hog futures contract 2611 fell to as low as 10,865 yuan/ton, down more than 9% from the beginning of the month, with a maximum decline of more than 22% during the year. Although demand in the hog market has picked up recently, the increase on the supply side has outpaced the increase in demand, putting pressure on pig prices and pushing them lower. Huayuan Securities pointed out that looking ahead, pressure from hog slaughtering on the supply side remains, while demand may gradually recover marginally after the weather turns cooler. The full-year supply rhythm shows a fluctuating pattern of "weak recovery stronger contraction again," but it is still necessary to guard against supply pressure arising from herd behavior.