On December 27th, 2024, the domestic pig farming industry emerged from a downturn and saw a significant year-on-year increase in profitability. However, the upstream feed market has not fully enjoyed the benefits of downstream recovery, and products are dragged down by low costs, resulting in a continuous decline in selling prices. As important raw materials for feed, soybean meal and corn prices will both weaken in 2024. In mid to late December, the main soybean meal contract 2505 in the domestic futures market fell again, hitting a nearly five-year low of 2549 yuan/ton. After hitting a recent low of 2120 yuan/ton in early December, the main corn contract 2505 continued its volatile market trend. The reporter recently learned from an interview that the prices of feed raw materials may remain low overall in 2025. Against the backdrop of continued weak cost support, expanding downstream breeding business for feed companies has become a good hedge against market weakness. (Securities Times)
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