Ding Yujia: What signals are released by the Development and Reform Commission to regulate the price of pigs?

Zhongxin Jingwei, July 5th. Question: What signals to release the price of pigs and reforms to regulate pig prices?

Author Ding Yujia Zhizhi Investment Research Institute researcher

According to the official WeChat public account of the National Development and Reform Commission, on July 5th, in response to the recent irrational behavior such as blind selling fences in the pig market, the Price Department of the National Development and Reform Commission responded to the launch of the launch of the central pork reserves, and guided the local area to jointly put the placement of reserves in a timely manner to form formed Regulating the joint force to prevent the price of pigs from rising excessively.

Pork prices are mainly affected by supply and demand. From the perspective of the supply side: the pork supply cycle fell at the end of 2021, and it is still at a low point; the price of pigs has continued to rise since April, and farmers have a strong bullish mood. Significantly reduced. From the perspective of demand: With the weakening of the epidemic, consumption resumes seasonal factors, and rising demand for residents has also pushed the price of pork.

Pork prices are an important classification of CPI (residential consumption price index). Pork prices fluctuate directly affects CPI fluctuations. High inflation will also suppress consumption, which is not conducive to economic stable growth. At the same time, the rising price of pork too fast will affect the price trend and market supply and demand of livestock, aquatic products, vegetables and vegetables, eggs, etc. through alternative effects and complementary effects, and affect the healthy and smooth operation of the market.

We believe that pork prices have been disturbed by artificial and abnormal factors in the recent rapid rise. If they are not guided, they may overdraw the reasonable room for pork prices in the future. For the measures for the National Development and Reform Commission to put on the central pork reserves, even if it does not land in the short term, it will affect market expectations and alleviate people for sale. It is expected that the farmer's outlets will be positive and the price of pig prices will continue to rise excessively. (Zhongxin Jingwei APP)

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