Guotou Securities: It is expected that the national pig prices will likely start to rebound in the peak season.

Guotou Securities' research report states that low-priced regions of Sichuan and Chongqing are leading the way, with recent increases in pork prices. Since July 28, pig prices in the Sichuan-Chongqing region have stabilized and rebounded, with increases of 0.9 yuan/kg and 0.8 yuan/kg respectively as of August 6. The national average price of live pigs also shows signs of stabilization. Meanwhile, the sales report from leading pig farming enterprise Juxing Farming shows that its hog sales volume in July has once again seen a month-on-month decline, with the average weight at the time of sale decreasing significantly by 3.2 kg per head. Data from Yongyi Consulting indicates that the average weight of live pig sales in Sichuan has decreased by 0.9 kg per head compared to early July, and the price gap for fat pigs has also widened significantly, which may indirectly reflect that the supply pressure for live pigs in the Sichuan-Chongqing region may have eased considerably. It is worth noting that in the second half of last year, central agencies such as the Ministry of Agriculture and Rural Affairs already began guiding reductions in national pig production capacity. The Sichuan Provincial Department of Agriculture and Rural Affairs and its affiliated local cities continue to support the development of the pig industry through subsidies for good breeds and incentives for sales, which may lead to greater supply pressure in Sichuan compared to other provinces this year. Given that supply pressure is theoretically greater in the low-priced pig market of Sichuan and Chongqing, the recent improvements in supply and rising pork prices have led Guotou Securities to anticipate a seasonal rebound in national pork prices as well.