Sino-Singapore Jingwei Client, January 11, on Monday, live pig futures hit an intraday limit.

As of 11:30, the main contract of live hog futures, LH2109, is still at the limit of falling, and it is now at 26,030 yuan/ton, down 7.99%.

The main contract of live hog futures LH2109 recently trend Source: Wind

　　Prior to this, DCE issued a notice stating that live pig futures will be listed for trading on January 8, 2021 (Friday).

The trading hours are Monday to Friday, 09:00-10:15, 10:30-11:30 and 13:30-15:00.

The first batch of listed trading contracts are LH2109, LH2111, and LH2201.

　　It is reported that the price limit of the hog futures contract is 8% of the settlement price of the previous trading day, and the price limit of the new contract on the first day of listing is 16% of the listed benchmark price.

The margin level for hedging transactions is 8% of the contract value, and the margin level for speculative transactions is 15% of the contract value.

　　It is worth mentioning that on January 8, the first day of the listing of live pig futures, all three futures contracts listed fell sharply.

As of 15:00 that day, LH2109 closed at 26810 yuan/ton, down 12.61%; LH2111 closed at 24,935 yuan/ton, down 15.99%; LH2201 closed at 24140 yuan/ton, down 15.83%.

　　Dongxing Futures pointed out that starting from June 2020, the stock of reproductive sows in my country has officially changed from negative to positive. According to the 10-month breeding cycle, the release of commercial pig production capacity should be in the second half of 2021. Therefore, the general trend of stable recovery of live pig production capacity will not be Changes, the downward cycle of pig prices has been established, the suppression of demand by high pig prices and the release of live pig production capacity will inhibit the high point of each round of pig price rebounds thereafter.

　　Hengtai Futures analysis believes that the pig breeding industry will still be in the downward stage of the pig cycle in 2021. It is recommended that breeding companies can reasonably adjust the breeding scale and breeding cycle according to the current re-raising process; on the other hand, they can also participate in hedging and lock in advance Breeding profits to avoid the risk of falling pig prices.

(Zhongxin Jingwei APP)