Core Insights - The report indicates a rebound in pig prices, with the average price for lean pigs at 13.09 CNY/kg as of January 23, reflecting a 4.8% week-on-week increase, although down 17.6% year-on-year. The industry is returning to profitability, with self-breeding operations reportedly earning about 40 CNY per head [2][10] - The report highlights a significant increase in the price of piglets, which rose to 353 CNY/head, a 7% increase week-on-week, suggesting a positive outlook among farmers for pig prices in the second half of the year [2][10] - The report recommends major breeding companies such as Wens Foodstuffs Group and Muyuan Foods, while also highlighting potential in smaller firms like Tiankang Biological and Shennong Group [2][10] Livestock Farming - The average price of white feather chickens is reported at 3.7 CNY/jin, down 1.3% week-on-week, with supply concerns due to avian influenza affecting imports from France [2][10] - The dairy sector shows a slight increase in fresh milk prices to 3.03 CNY/kg, up 0.3% week-on-week, while some regions report prices rebounding to 3.3-3.4 CNY/kg [2][11] - The report notes that the supply of beef is expected to tighten due to new import tariffs, which may lead to increased domestic beef prices and improved earnings for companies like Yurun Food and Modern Farming [2][11] Feed and Animal Health - The report indicates a continued upward trend in aquaculture prices, driven by supply-demand imbalances and seasonal factors, which may benefit feed demand in the short term [2][12] - The feed industry remains competitive, with leading companies expected to gain market share due to their comprehensive advantages [2][12] - The report suggests that leading animal health companies are expanding into pet healthcare, with growth potential in pet vaccines and pharmaceuticals [2][12] Agricultural Sector Performance - The agricultural sector outperformed the market by 1 percentage point, with the sector rising by 0.4% while the CSI 300 index fell by 0.6% [2][18] - Sub-sectors such as planting, agricultural processing, and fisheries showed notable gains, with increases of 4.1%, 4.0%, and 2.9% respectively [2][18] Agricultural Product Prices - The report tracks significant price movements in agricultural products, noting a 4.8% increase in pig prices and a 1.3% decrease in chicken prices [2][20] - The report also highlights the current prices of corn at 2375 CNY/ton, up 0.5% week-on-week, and soybean meal at 3194 CNY/ton, down 0.1% [2][44][53] - The report indicates that the price of wheat has also increased by 0.5% to 2527 CNY/ton [2][55]