Group 1: Investment Rating - No investment rating for the industry is provided in the report. Group 2: Core Viewpoints - The supply pressure of the pig market is increasing, and pig prices are continuing to decline. The overall market is still under pressure in the short - term, with limited upside potential. The futures price is expected to be mainly in a low - level oscillatory operation in the medium and long term [1][3][5][6] - The overall futures price of live pigs shows an oscillatory performance. Although there may be short - term upward movements, in the long run, the supply - side pressure is the main influencing factor on the market [6] Group 3: Summary by Relevant Catalogs Spot Price - Today, the live pig prices across the country are in a downward state. The average price has dropped from 10.34 to 10.24, with most regions experiencing price declines [3] - The scale enterprises' slaughter volume continues to increase significantly, and it is expected that the slaughter volume this month will continue to rise. The slaughter volume of ordinary farmers remains relatively low but may increase in the future [3] - The secondary fattening is more cautious. Although there is a high price difference between large and small pigs, the continuous decline in pig prices and the high inventory level make the market still cautious [3][6] - The current slaughter weight of live pigs remains relatively high, and the overall supply - side pressure is still relatively obvious [3] Futures Price - The overall futures price of live pigs shows an oscillatory performance. The prices of some contracts such as LH01, LH07, LH09, and LH11 have increased, while the prices of contracts such as LH05 have decreased [3] - In the long run, due to the high supply - side pressure and relatively high production capacity in the breeding end, the futures price is expected to be mainly in a low - level oscillatory operation [6] - However, due to the continuous widening of the price difference between large and small pigs, the future slaughter rhythm may slow down, and the price pressure may improve, which may lead to short - term upward movements in the futures price [6] Sow/Piglet Price - The piglet price has dropped from 357 to 348, and the sow price remains unchanged at 1557 [3] - The spot breeding profit for self - breeding and self - raising has dropped from - 98.32 to - 159.65, and the profit for purchasing piglets has dropped from 53.10 to 20.83 [3] Slaughter End - The slaughter volume has increased from 125,729 to 129,803, an increase of 4,074 [3] Price Difference between Large and Small Pigs - The price difference between standard pigs and medium pigs has decreased from 0.67 to 0.65; the price difference between medium - large pigs and standard pigs has increased from 0.22 to 0.23; the price difference between large pigs and medium - large pigs has decreased from 0.6 to 0.5; the price difference between large pigs and standard pigs has decreased from 0.82 to 0.73 [3] Trading Strategy - Unilateral: It is recommended to short - sell far - month contracts on rallies [7] - Arbitrage: Wait and see [7] - Options: Mainly adopt the strategy of selling wide straddles [7]

Core Viewpoint - The average price of pork in China's wholesale agricultural market has decreased, indicating a downward trend in pork prices [1] Price Trends - On December 5, the average price of pork was 17.68 yuan per kilogram, a decrease of 0.8% compared to 17.83 yuan per kilogram on November 28 [1] - The average price for the week was 17.69 yuan per kilogram, down 1.1% from the previous week's average of 17.88 yuan per kilogram [1]