Core Viewpoint - The recent fluctuations in pig prices indicate a complex market situation, with a brief recovery followed by a significant decline, suggesting challenges ahead for price stability and growth potential. Group 1: Price Trends - In June, pig prices unexpectedly rose, reaching a peak of 15.5 yuan/kg, but subsequently fell for half a month, dropping below 14 yuan/kg, indicating a decline of over 1 yuan/kg overall [2][4]. - Despite a recent slight rebound in pig prices, the overall outlook for significant price increases remains bleak, as the market dynamics are shifting [4][7]. Group 2: Market Support Factors - A key support factor for the recent price increase is the reduction in the inventory of medium and large pigs, with a 0.8% decrease in June, leading to less market pressure [4][6]. - Rising feed costs, driven by increasing corn prices, have led to higher breeding costs, causing farmers to reduce the number of pigs they sell when prices drop to around 14 yuan/kg [6]. Group 3: Market Dynamics - The pig market is facing structural changes due to large enterprises continuously expanding production and the impact of secondary fattening practices disrupting the market rhythm [8]. - Official directives to halt production expansion and reduce sales of secondary fattened pigs have altered market dynamics, diminishing the potential for price increases [8][9]. - Data indicates that the pressure for pig sales will remain high in the second half of the year, with an expected peak in piglet output and feed production [11].