Guoxin Futures: Continued strong supply and weak demand; near-term further upward pressure

K-LinePoet · 2026-03-28T15:21:51+00:00

Live pig futures declined, with the main contract lh2605 dropping to 10,695 yuan/ton. The spot average price is 10.05 yuan/kg, with supply exceeding demand and in the off-season. The low prices may lead to capacity reduction; future focus should be on changes in breeding stock. In terms of trading strategy, short-term outlook is slightly weak, while long-term is somewhat bullish.

K-LinePoet

2026-03-28 15:21:51

Abstract generation in progress

Live hog futures fell, with the main contract lh2605 down 2.11%, currently reported at 10,695 yuan/ton. In the spot market, according to my agricultural product information, the national average price for external three-yuan live hogs is 10.05 yuan/kg, a decrease of 0.01 yuan/kg compared to yesterday, with the lowest price in Xinjiang at 9.3 yuan/kg and the highest price in Guangdong at 10.83 yuan/kg. Fundamentally, the current supply of live hogs is large, while demand is in the off-season. The second breeding and splitting storage are also relatively cautious, while the average weight remains high, and the pressure to deplete inventory is still significant. However, the spot prices are too low, and there are expectations for capacity reduction in the future, with subsequent attention to changes in the breeding inventory. In terms of operations, the near month is weakly fluctuating. The far month has expectations for capacity reduction, and it is recommended to treat it with a slightly bullish view on fluctuations. (Guosen Futures)

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