1. Report Industry Investment Rating - There is no information about the report industry investment rating in the provided content. 2. Core Viewpoints - The recent sharp rise in the price of the main May contract of eggs is due to the increase in feed costs and good market sales, but considering the current loose supply in the fundamentals and the high price of the May contract, and the limited trading time approaching the position limit, it is not recommended to chase the rise of eggs [6]. 3. Summary by Directory 3.1 Futures Market - **Contract Prices**: JD01 closed at 3727, down 4 from the previous day; JD05 closed at 3440, down 13; JD09 closed at 3778, down 11 [2]. - **Cross - month Spreads**: The 01 - 05 spread closed at 287, up 9; the 05 - 09 spread closed at - 338, down 2; the 09 - 01 spread closed at 51, down 7 [2]. - **Ratios**: The 01 egg/corn ratio was 1.58, unchanged; the 05 egg/corn ratio was 1.46, down 0.01; the 09 egg/corn ratio was 1.59, down 0.01. The 01 egg/bean meal ratio was 1.23, unchanged; the 05 egg/bean meal ratio was 1.18, unchanged; the 09 egg/bean meal ratio was 1.26, unchanged [2]. 3.2 Spot Market - **Egg Prices**: The average price in the main production areas was 3.31 yuan/jin, down 0.09 yuan/jin from the previous day; the average price in the main sales areas was 3.51 yuan/jin, down 0.03 yuan/jin. The national mainstream prices were stable or falling [4]. - **淘汰鸡 Prices**: The average price of culled chickens in the main production areas was 5.02 yuan/jin, up 0.01 yuan/jin from the previous day [5]. 3.3 Profit Calculation - **Costs**: The average price of culled chickens was 5.02 yuan/jin, unchanged; the average price of chicken seedlings was 3.21 yuan, up 0.04 yuan; the cost of egg - chicken vaccines was 3 yuan, unchanged. The average price of corn was 2449 yuan, down 2 yuan; the average price of bean meal was 3260 yuan, unchanged; the price of egg - chicken compound feed was 2.69 yuan, unchanged [2]. - **Profits**: The profit per chicken was 11.71 yuan, down 3.75 yuan from the previous day [2]. 3.4 Fundamental Information - **Production and Sales**: In February, the national inventory of laying hens was 1.35 billion, an increase of 60 million from the previous month and a year - on - year increase of 3.4%. The monthly output of chicken seedlings in February was about 43.3 million, with little change from the previous month and a year - on - year decrease of 5% [4]. - **Chicken Culling**: In the week of March 19, the number of culled laying hens in the main production areas was 15.4 million, an increase of 5.8% from the previous week. The average culling age was 505 days, unchanged from the previous week [5]. - **Sales Volume**: As of the week of March 19, the egg sales volume in the representative sales areas was 6898 tons, an increase of 7.2% from the previous week, in the middle - low position of the same period over the years [5]. - **Profit and Inventory**: As of March 19, the weekly average profit per jin of eggs was - 0.22 yuan/jin, a recovery of 0.11 yuan/jin from the previous week; the expected profit of laying - hen farming was - 10.39 yuan per chicken, a recovery of 0.2 yuan per chicken from the previous week. The average inventory in the production link was 1.04 days, a decrease of 0.03 days from the previous week; the average inventory in the circulation link was 1.17 days, unchanged from the previous week [5]. 3.5 Trading Logic - The recent sharp rise in the price of the main May contract of eggs is due to the increase in feed costs and good market sales. However, considering the current loose supply in the fundamentals and the high price of the May contract, and the limited trading time approaching the position limit, it is not recommended to chase the rise of eggs [6]. 3.6 Trading Strategies - **Single - side**: Consider shorting the June contract on rallies [7]. - **Arbitrage**: It is recommended to wait and see [7]. - **Options**: It is recommended to wait and see [7].

1. Report Industry Investment Rating - Not provided in the given content 2. Core View of the Report - The recent sharp rise in the price of the main May contract of eggs is due to the increase in feed costs and good market sales. However, considering the current loose supply in the fundamentals and the high price of the May contract, and the limited trading time approaching the position limit, it is not recommended to chase the rise of eggs. It is advisable to consider shorting the June contract on rallies, and it is recommended to wait and see for arbitrage and options [7][8]. 3. Summary by Relevant Catalogs 3.1 Futures Market - **Contract Prices**: JD01 closed at 3731, up 7 from the previous day; JD05 closed at 3453, down 49; JD09 closed at 3789, down 16 [2]. - **Cross - Month Spreads**: The 01 - 05 spread closed at 278, up 56; the 05 - 09 spread closed at - 336, down 33; the 09 - 01 spread closed at 58, down 23 [2]. - **Ratios**: The 01 egg/corn ratio was 1.58, up 0.01; the 01 egg/soybean meal ratio was 1.23, up 0.01. Other ratios also had corresponding changes [2]. 3.2 Spot Market - **Egg Prices**: The average price in the main production areas was 3.41 yuan/jin, up 0.02 yuan/jin from the previous day; the average price in the main sales areas was 3.54 yuan/jin, up 0.03 yuan/jin. Most national mainstream prices remained stable, with some local fluctuations [2][4]. - **Culled Chicken Prices**: The average price of culled chickens in the main production areas was 5.02 yuan/jin, up 0.01 yuan/jin from the previous day [2][6]. 3.3 Profit Calculation - **Costs**: The average price of culled chickens was 5.02 yuan/jin, up 0.01 yuan/jin; the average price of chicks was 3.21 yuan, up 0.04 yuan; the price of egg - chicken vaccines was 3 yuan, unchanged; the average price of corn was 2451 yuan, down 2 yuan; the average price of soybean meal was 3268 yuan, unchanged; the price of egg - chicken compound feed was 2.70 yuan, unchanged [2]. - **Profits**: The profit per chicken was 15.29 yuan, up 0.98 yuan from the previous day [2]. 3.4 Fundamental Information - **Egg Production and Sales**: In February, the national inventory of laying hens was 1.35 billion, an increase of 60 million from the previous month and a year - on - year increase of 3.4%. The monthly output of chicks in sample enterprises in February was about 43.3 million, with little change month - on - month and a year - on - year decrease of 5%. As of the week of March 19, the sales volume of eggs in representative sales areas was 6898 tons, an increase of 7.2% from the previous week, at a relatively low level in the same period over the years [4][5]. - **Culled Chicken Situation**: In the week of March 19, the number of culled chickens in the main production areas was 15.4 million, an increase of 5.8% from the previous week, and the average culling age was 505 days, the same as the previous week [5]. - **Inventory and Profit**: As of March 19, the average weekly inventory in the production link was 1.04 days, a decrease of 0.03 days from the previous week; the average weekly inventory in the circulation link was 1.17 days, the same as the previous week. The average weekly profit per jin of eggs was - 0.22 yuan/jin, an increase of 0.11 yuan/jin from the previous week; the expected profit of egg - chicken farming on March 19 was - 10.39 yuan per chicken, an increase of 0.2 yuan per chicken from the previous week [5]. 3.5 Trading Logic - The sharp rise in the price of the main May contract of eggs is due to the increase in feed costs and good market sales. However, considering the current loose supply in the fundamentals and the high price of the May contract, and the limited trading time approaching the position limit, it is not recommended to chase the rise of eggs [7]. 3.6 Trading Strategies - **Single - Side**: Consider shorting the June contract on rallies [8]. - **Arbitrage**: It is recommended to wait and see [8]. - **Options**: It is recommended to wait and see [8].

Investment Rating - The industry rating is "Outperform the Market" indicating that the overall return of the industry is expected to exceed the market benchmark index by more than 5% in the next 6 months [4][70]. Core Insights - The pig farming sector is experiencing a significant decline in prices, leading to widespread losses among farmers. As of March 27, the price of pigs dropped to 9.37 CNY/kg, a decrease of 0.50 CNY/kg from March 20. The profits for self-breeding and purchased pig farming are reported at -344.24 CNY/head and -189.87 CNY/head respectively, with week-on-week declines of 46.56 CNY and 48.39 CNY [2][9][28]. - The beef market shows an upward trend in prices for fattened and calf cattle, with prices reaching 26.21 CNY/kg and 35.09 CNY/kg respectively as of March 27, 2026. This is attributed to tight supply and strong market sentiment, suggesting a bullish outlook for beef prices in the coming years [3][30]. - The poultry sector is facing pressure, particularly in the white chicken segment, where prices for chicken products have declined due to falling pig prices. As of March 27, the price for white feathered meat chickens was 7.11 CNY/kg, down 0.22% week-on-week [3][39]. Summary by Sections Pig Farming - Continued decline in pig prices leading to comprehensive losses in farming. The average price on March 27 was 9.37 CNY/kg, with significant losses reported in farming profits [2][9][28]. - Increased slaughtering rates and rising frozen product inventories indicate a slow recovery in demand, with average daily slaughtering volume at 154,700 heads, up 3.32% from the previous week [12][28]. - The average weight of pigs at market is increasing slightly, with an average of 128.71 kg as of March 26, indicating strong selling intentions despite limited market absorption capacity [20][28]. Beef Industry - Prices for fattened and calf cattle are on the rise, with current prices at 26.21 CNY/kg and 35.09 CNY/kg respectively, reflecting a tightening supply and bullish market sentiment [3][30]. - The beef market is expected to enter an upward cycle in prices from 2026 to 2027 due to reduced supply from the ongoing decrease in breeding cows [30]. Dairy Sector - The raw milk price remains low at 3.03 CNY/kg as of March 20, with expectations of continued capacity reduction leading to a potential stabilization and recovery in prices in 2026 [31]. Poultry Sector - The white chicken segment is under pressure with declining prices for both chicken products and chicks, attributed to the impact of falling pig prices. The average price for chicks is 3.07 CNY/bird, down 0.13% week-on-week [39][42]. - The egg market is seeing a slight increase in prices due to seasonal stocking ahead of the Qingming Festival, with an average wholesale price of 7.72 CNY/kg as of March 27 [3][39]. Seed Industry - The 2026 Central Document No. 1 emphasizes the promotion of biological breeding industrialization, which is expected to enhance food security and benefit leading seed companies [52].

Summary of the Conference Call for Xiaoming Co., Ltd. Industry Overview - The egg-laying chicken industry in 2025 is characterized by overproduction due to excessive replenishment in the first half of the year, with over 600 million chickens added, leading to a supply surplus that is expected to last until July-August 2026 [2][3][4]. - The second half of 2026 is anticipated to shift towards a tight balance in supply and demand, primarily due to insufficient replenishment in the latter half of 2025 and the first half of 2026, alongside expectations of a rebound in pork prices [2][5]. - The average laying hen stock in 2025 remained high, exceeding 1.3 billion, indicating a significant overcapacity [3][4]. Key Points on Xiaoming Co., Ltd. - Xiaoming Co., Ltd. aims for a chick sales target of 350 million in 2026, capturing a 30% market share, with orders extending to late May 2026 [2][9]. - The company’s core growth driver is the young chicken business, targeting sales of 10 million in 2026, doubling from the previous year, with plans to reach 50 million in 3-4 years [2][14]. - The company has implemented a strategy to convert low-cost chicks into branded eggs when chick prices fall below production costs, allowing for a price premium of 20%-30% [2][16]. - Digitalization and ESG initiatives are accelerating, with plans to establish a "Future Farm" by July 2026, incorporating AI and robotics for farm management [2][6]. Financial Performance and Market Dynamics - The average cost per chick is expected to stabilize around 3.2 yuan, with the company managing to keep costs in check despite rising feed prices [2][10][21]. - The company experienced a loss in January and February 2026 but anticipates profitability starting in March, with orders already booked through May [9][10]. - The young chicken business has shown resilience, with prices recovering in March 2026 after a slight loss in the previous months [13][14]. Market Trends and Consumer Behavior - The egg market is expected to see two small peaks in 2026, with prices fluctuating around the cost line in the first half and potentially rising in the second half due to reduced supply and increased demand for high-quality and branded eggs [5][8]. - There is a growing trend towards quality and brand differentiation in egg consumption, with a shift from traditional markets to supermarkets [5][18]. - The non-caged egg segment is anticipated to grow, although current supply is significantly below demand, indicating a potential market opportunity [18][19]. Strategic Initiatives and Future Outlook - The company plans to expand its "concentrated breeding, decentralized hatching" model, which has proven effective in ensuring biosecurity and operational efficiency [16][17]. - Future growth in the non-caged egg market will depend on legislative progress, increased food safety recognition, and transparency in procurement information [19]. - Xiaoming Co., Ltd. is exploring overseas investment opportunities, with potential developments expected in 2026 [20]. Conclusion - Xiaoming Co., Ltd. is positioned to navigate the challenges of the egg-laying chicken industry through strategic growth in young chicken sales, digital transformation, and a focus on high-quality products. The company is also preparing for potential international expansion while managing costs effectively amidst rising feed prices.

Group 1: Report Industry Investment Rating - No relevant content found Group 2: Core Viewpoints of the Report - The price of the main May contract of eggs rose significantly today, with a maximum increase of 3.37% to over 3,525 yuan/ton. The position of the May contract increased instead of decreasing as the limit on positions approached before delivery. On the one hand, the recent increase in feed costs has raised the price center, and the average price of eggs in the main producing areas has recently risen to 3.3 yuan/jin. On the other hand, the market has been moving goods well recently, so the willingness to place buy orders has increased. However, considering the current situation, the current fundamental supply is relatively loose, and the increase in the May contract today is too large. Considering that the trading time for the May contract is limited as the limit on positions approaches in the future, funds may also close their positions in advance. Therefore, it is not recommended to chase the rise in eggs [8]. Group 3: Summary by Directory 1. Fundamental Information - The average price in the main producing areas today is 3.31 yuan/jin, an increase of 0.03 yuan/jin compared to the previous trading day; the average price in the main selling areas is 3.47 yuan/jin, remaining unchanged from the previous trading day. Most of the mainstream prices across the country remained stable today. The egg prices in major markets in Beijing remained stable, with the mainstream reference price in Beijing at 148 yuan/44 jin, and the mainstream wholesale prices in Shimen, Xinfadi, and Huilongguan at 148 yuan/44 jin. The mainstream wholesale price of eggs on Dayang Road was 148 yuan [stable], with both high and low prices depending on quality, normal arrivals, flexible transactions, and normal sales. Egg prices in Northeast Liaoning, Jilin, and Heilongjiang remained stable, prices in Shanxi and Hebei were mainly stable, the mainstream prices in Shandong were mostly stable, egg prices in Henan were stable, brown egg prices in Hubei were stable, and prices in Jiangsu and Anhui were mainly stable. There were some price fluctuations in local areas, and egg prices continued to fluctuate and consolidate, with normal sales [4]. - According to Zhuochuang data, the number of laying hens in production nationwide in February was 1.35 billion, an increase of 60 million compared to the previous month and a year-on-year increase of 3.4%, higher than previously expected. The monthly output of laying hen chicks from sample enterprises monitored by Zhuochuang Information in February (accounting for about 50% of the country) was 43.3 million, with little change month-on-month and a year-on-year decrease of 5% [4]. - According to Zhuochuang data, the number of laying hens culled in the main producing areas nationwide in the week of March 5 was 10.94 million, an increase of 24% compared to the previous week. According to the monitoring and statistics of the culling age of culled hens in key producing areas across the country by Zhuochuang Information, the average culling age of culled hens in the week of March 5 was 502 days, an increase of 1 day compared to the previous week [5]. - According to Zhuochuang data, as of the week of March 5, the egg sales volume in representative selling areas nationwide was 7,304 tons, an increase of 1.5% compared to the previous week, which is at a relatively high level in the same period over the years [5]. - According to Zhuochuang data, as of March 5, the weekly average profit per jin of eggs was -0.29 yuan/jin, a decrease of 0.06 yuan/jin compared to the previous week; on February 27, the expected profit from laying hen farming was -11.85 yuan/hen, a decrease of 1.27 yuan/jin compared to the previous week [5]. - According to Zhuochuang data, as of the week of March 5, the average weekly inventory in the production link was 1.22 days, a decrease of 0.04 days compared to the previous week's inventory days [6]. - The average weekly inventory in the circulation link was 1.27 days, an increase of 0.02 days compared to the previous week [7]. - The price of culled hens across the country fell today, with the average price in the main producing areas at 5.07 yuan/jin, a decrease of 0.14 yuan/jin compared to the previous trading day [7]. 2. Trading Logic - The price of the main May contract of eggs rose significantly today, with a maximum increase of 3.37% to over 3,525 yuan/ton. The position of the May contract increased instead of decreasing as the limit on positions approached before delivery. On the one hand, the recent increase in feed costs has raised the price center, and the average price of eggs in the main producing areas has recently risen to 3.3 yuan/jin. On the other hand, the market has been moving goods well recently, so the willingness to place buy orders has increased. However, considering the current situation, the current fundamental supply is relatively loose, and the increase in the May contract today is too large. Considering that the trading time for the May contract is limited as the limit on positions approaches in the future, funds may also close their positions in advance. Therefore, it is not recommended to chase the rise in eggs [8]. 3. Trading Strategies - Unilateral: Consider shorting the June contract on rallies [9]. - Arbitrage: It is recommended to wait and see [9]. - Options: It is recommended to wait and see [9].

Group 1: Report Industry Investment Rating - Not provided in the report Group 2: Core View of the Report - Due to the good profit performance in the early stage, the market's enthusiasm for culling has decreased, slowing down the overall capacity reduction. Considering that the egg consumption enters the off - season after the Spring Festival, although the inventory has been alleviated, the recent good egg price performance has weakened the overall capacity reduction. It is advisable to consider shorting the June contract on rallies [8] Group 3: Summary by Directory 1. Futures and Spot Market - **Futures Market**: JD01 closed at 3690, up 8 from the previous day; JD05 closed at 3410, up 9; JD09 closed at 3793, up 10. The 01 - 05 spread was 280, down 1; 05 - 09 spread was - 383, down 1; 09 - 01 spread was 103, up 2. The ratios of 01, 05, and 09 eggs to corn and soybean meal all increased by 0.01 [2] - **Spot Market**: The average price in the main production areas was 3.31 yuan/jin, up 0.03 yuan/jin from the previous day; the average price in the main sales areas was 3.47 yuan/jin, unchanged from the previous day. Most of the national mainstream prices remained stable. The average price of culled chickens was 5.05 yuan/jin, unchanged from the previous day [2][4] 2. Fundamental Information - **Production and Sales**: In February, the national inventory of laying hens was 1.35 billion, an increase of 0.06 billion from the previous month and a year - on - year increase of 3.4%. The monthly output of laying hen chicks in February was about 43.3 million, with little change month - on - month and a year - on - year decrease of 5% [4] - **Culling**: In the week of March 5, the number of culled laying hens in the main production areas was 10.94 million, a 24% increase from the previous week. The average culling age was 502 days, an increase of 1 day from the previous week [5] - **Sales Volume**: As of the week of March 5, the egg sales volume in the representative sales areas was 7304 tons, a 1.5% increase from the previous week, at a relatively high level in the same period over the years [5] - **Profit**: As of the week of March 5, the weekly average profit per jin of eggs was - 0.29 yuan/jin, a decrease of 0.06 yuan/jin from the previous week. On February 27, the expected profit of laying hen farming was - 11.85 yuan/feather, a decrease of 1.27 yuan/jin from the previous week [5] - **Inventory**: As of the week of March 5, the average weekly inventory in the production link was 1.22 days, a decrease of 0.04 days from the previous week; the average weekly inventory in the circulation link was 1.27 days, an increase of 0.02 days from the previous week [6][7] 3. Trading Logic - Due to the good profit performance in the early stage, the market's enthusiasm for culling has decreased, slowing down the overall capacity reduction. Considering the off - season of egg consumption after the Spring Festival and the recent good egg price performance, it is advisable to consider shorting the June contract on rallies [8] 4. Trading Strategy - **Single - side**: Consider shorting the June contract on rallies [9] - **Arbitrage**: It is recommended to wait and see [9] - **Options**: It is recommended to wait and see [9]

Group 1: Report Industry Investment Rating - No relevant content found Group 2: Core Viewpoints of the Report - Due to the good profit performance in the early stage, the market's enthusiasm for culling has decreased, slowing down the overall capacity reduction. Considering the post - Spring Festival egg consumption off - season, although the inventory has been alleviated, the recent good egg price performance has weakened the overall reduction. It is advisable to consider shorting the June contract on rallies [8] Group 3: Summary by Relevant Catalogs 1. Futures Market - **Futures Contract Prices**: JD01 closed at 3682, down 3 from the previous day; JD05 closed at 3401, down 42; JD09 closed at 3783, down 25 [2] - **Cross - month Spreads**: The 01 - 05 spread was 281, up 39; the 05 - 09 spread was - 382, down 17; the 09 - 01 spread was 101, down 22 [2] - **Ratio of Egg to Feed**: The 01 egg/corn ratio was 1.55, up 0.01; 05 egg/corn was 1.43, unchanged; 09 egg/corn was 1.57, up 0.01. The 01 egg/bean meal ratio was 1.20, up 0.01; 05 egg/bean meal was 1.15, up 0.00; 09 egg/bean meal was 1.25, unchanged [2] 2. Spot Market - **Egg Prices**: The average price in the main producing areas was 3.28 yuan/jin, up 0.01 yuan/jin from the previous day; the average price in the main selling areas was 3.47 yuan/jin, unchanged [4] - **Culled Chicken Prices**: The average price of culled chickens in the main producing areas was 5.05 yuan/jin, down 0.02 yuan/jin from the previous day [2] 3. Profit Calculation - **Cost and Profit**: The average price of culled chickens was 5.05 yuan/jin, down 0.02 yuan/jin; the average price of chicks was 3.21 yuan, up 0.04 yuan; the profit per chicken was 9.34 yuan, up 0.41 yuan from the previous day. The average price of corn was 2453 yuan, unchanged; the average price of bean meal was 3346 yuan, unchanged; the price of egg - laying chicken compound feed was 2.72 yuan, unchanged [2] 4. Fundamental Information - **Egg Production and Sales**: In February, the national laying hen inventory was 1.35 billion, an increase of 60 million from the previous month and a year - on - year increase of 3.4%. The monthly chick output of sample enterprises in February was 43.3 million, with little change month - on - month and a year - on - year decrease of 5% [4] - **Culled Chicken Statistics**: In the week of March 5th, the number of culled laying hens in the main producing areas was 10.94 million, a 24% increase from the previous week. The average culling age was 502 days, an increase of 1 day from the previous week [5] - **Egg Sales Volume**: As of the week of March 5th, the egg sales volume in the representative selling areas was 7304 tons, a 1.5% increase from the previous week, at a relatively high level in the same period over the years [5] - **Profit and Inventory**: As of March 5th, the weekly average profit per jin of eggs was - 0.29 yuan/jin, a decrease of 0.06 yuan/jin from the previous week. The average inventory in the production link was 1.22 days, a decrease of 0.04 days from the previous week; the average inventory in the circulation link was 1.27 days, an increase of 0.02 days from the previous week [5][6][7] 5. Trading Strategy - **Single - side Trading**: Consider shorting the June contract on rallies [9] - **Arbitrage**: It is recommended to wait and see [9] - **Options**: It is recommended to wait and see [9]

1. Report Industry Investment Rating There is no information about the report industry investment rating in the provided content. 2. Core Viewpoints of the Report - The overall capacity reduction has slowed down due to the good profit performance in the early stage, which has decreased the market's enthusiasm for culling. Considering that the egg consumption enters the off - season after the Spring Festival, although the inventory has been alleviated, the recent good egg price performance has weakened the overall capacity reduction. It is advisable to consider shorting the June contract at high prices [8]. 3. Summary by Relevant Catalogs 3.1 Futures Market - **Futures Prices**: JD01 closed at 3685, up 16 from the previous day; JD05 closed at 3443, up 34; JD09 closed at 3808, up 14 [2]. - **Cross - month Spreads**: The 01 - 05 spread was 242, down 18; the 05 - 09 spread was - 365, up 20; the 09 - 01 spread was 123, down 2 [2]. - **Price Ratios**: The 01 egg/corn ratio was 1.54, down 0.01; the 01 egg/bean meal ratio was 1.19, unchanged; the 05 egg/corn ratio was 1.43, unchanged; the 05 egg/bean meal ratio was 1.14, up 0.02; the 09 egg/corn ratio was 1.57, down 0.01; the 09 egg/bean meal ratio was 1.25, up 0.01 [2]. 3.2 Spot Market - **Egg Prices**: The average price in the main production areas was 3.27 yuan/jin, up 0.02 yuan/jin from the previous day; the average price in the main sales areas was 3.47 yuan/jin, up 0.09 yuan/jin [2][4]. - **Culled Chicken Prices**: The average price of culled chickens in the main production areas was 5.07 yuan/jin, down 0.14 yuan/jin from the previous day [2][7]. 3.3 Profit Calculation - **Costs**: The average price of corn was 2453 yuan/ton, down 2 yuan/ton; the average price of bean meal was 3372 yuan/ton, unchanged; the price of egg - laying chicken compound feed was 2.73 yuan, unchanged [2]. - **Profits**: The profit per chicken was 8.50 yuan, up 0.44 yuan from the previous day [2]. 3.4 Fundamental Information - **Egg Prices**: The national mainstream egg prices mostly remained stable, with prices in many regions such as Beijing, Northeast China, and Shandong remaining unchanged. The egg prices continued to fluctuate and consolidate, and the sales were normal [4]. - **Laying Hen Inventory**: In February, the national inventory of laying hens was 1.35 billion, an increase of 60 million from the previous month and a year - on - year increase of 3.4%, higher than expected. The monthly output of egg - laying chicken chicks in the sample enterprises monitored by Zhuochuang Information (accounting for about 50% of the country) was 43.3 million, with little change month - on - month and a year - on - year decrease of 5% [4]. - **Culled Chicken Data**: In the week of March 5th, the number of culled laying hens in the main production areas was 10.94 million, an increase of 24% from the previous week. The average culling age of culled chickens was 502 days, an increase of 1 day from the previous week [5]. - **Egg Sales**: As of the week of March 5th, the egg sales volume in the representative sales areas was 7304 tons, an increase of 1.5% from the previous week, at a relatively high level in the same period over the years [5]. - **Profit and Inventory**: As of the week of March 5th, the weekly average profit per jin of eggs was - 0.29 yuan/jin, a decrease of 0.06 yuan/jin from the previous week; on February 27th, the expected profit of egg - laying chicken farming was - 11.85 yuan per chicken, a decrease of 1.27 yuan/jin from the previous week. The average weekly inventory in the production link was 1.22 days, a decrease of 0.04 days from the previous week; the average weekly inventory in the circulation link was 1.27 days, an increase of 0.02 days from the previous week [5][6][7]. 3.5 Trading Logic The good profit performance in the early stage has reduced the market's enthusiasm for culling, slowing down the overall capacity reduction. Considering the off - season of egg consumption after the Spring Festival, although the inventory has been alleviated, the recent good egg price performance has weakened the overall capacity reduction. It is advisable to consider shorting the June contract at high prices [8]. 3.6 Trading Strategies - **Single - side**: Consider shorting the June contract at high prices [9]. - **Arbitrage**: It is recommended to wait and see [9]. - **Options**: It is recommended to wait and see [9].

Core Insights - The report indicates a significant decline in pig prices, with the national average price dropping to 9.98 CNY/kg, a 4% decrease from the previous week and a 30.9% decrease year-on-year. This decline is attributed to increased supply pressure and rising feed costs, leading to cash flow challenges across the industry [6][14][25]. - The report emphasizes the need for policy adjustments to reduce annual output among leading pig farming companies, suggesting that effective capacity reduction is underway, signaling the potential for a new industry cycle [6][14]. - The report recommends focusing on leading companies with cost advantages, specifically highlighting Wens Foodstuffs and Muyuan Foods as key investment opportunities, while also suggesting attention to other companies like Dekang Agriculture and New Hope [6][14]. Livestock Farming - The average weight of pigs sold this week is approximately 128.6 kg, showing a slight increase from the previous week, but the overall supply pressure remains high [6][14]. - In the broiler chicken sector, the average price for broilers in Yantai is 3.52 CNY/jin, remaining stable, while the price for broiler chicks has increased by 9.8% to 3.2 CNY/chick, indicating potential for improved performance in Q1 2026 for white-feathered chicken companies [6][14]. - The report suggests monitoring companies like Shengnong Development and Yisheng Livestock for potential gains in the white-feathered chicken market [6][14]. Dairy Industry - The report notes that the price of fresh milk in major production areas is 3.02 CNY/kg, reflecting a 1.9% year-on-year decrease and a 0.3% decrease from the previous month. The reduction in milk prices is linked to the end of the stocking season and ongoing adjustments in dairy cow inventory [15][47]. - The report expresses optimism about the future upward cycle of raw milk prices, driven by improvements in supply-demand balance and the cyclical rise in beef prices, recommending companies like Yuran Dairy and Modern Dairy for investment [15][47]. Feed and Animal Health - The report highlights structural price differentiation in the aquaculture sector, with an increase in stock levels compared to last year, which is expected to boost feed demand. The report anticipates significant growth in the aquaculture feed industry in March [16]. - It emphasizes the competitive landscape in the feed industry, suggesting that leading companies are likely to gain market share due to their cost advantages and efficiency, particularly in international markets [16]. - The report also notes that leading animal health companies are exploring new avenues such as pet healthcare and synthetic biology, which could enhance industry profitability [16]. Crop Prices - The report tracks key crop prices, noting that corn prices have increased by 0.3% to 2455 CNY/ton, while soybean meal prices have decreased by 1% to 3405 CNY/ton. Wheat prices have risen by 0.9% to 2600 CNY/ton, indicating a mixed trend in crop pricing [17][50][60]. - The report suggests that rising agricultural commodity prices could improve profitability for planting sectors, benefiting upstream entities like seed and land resource companies [18][50]. Pet Food Market - The report indicates that the urban pet consumption market is projected to reach 312.6 billion CNY by 2025, with a year-on-year growth of 4.1%. The market is showing signs of consolidation, with leading companies expected to drive the penetration of new product categories [19]. - Companies like Guibao Pet and Zhongchong Co. are highlighted for their innovative product strategies aimed at enhancing nutritional standards and expanding their market presence [19].

Investment Rating - The report maintains an "Overweight" rating for the agricultural, forestry, animal husbandry, and fishery industry [1][45]. Core Insights - The SW agricultural, forestry, animal husbandry, and fishery industry outperformed the CSI 300 index, rising by 1.03% from March 6 to March 19, 2026, exceeding the index by approximately 2.42 percentage points [11]. - Over half of the sub-sectors recorded positive returns during the same period, with notable gains in the breeding, animal health, feed, and agricultural product processing sectors, while planting and fishery sectors experienced declines [12]. - The overall price-to-book (PB) ratio for the industry is approximately 2.68 times, reflecting a slight recovery in valuation, which remains at a historical low level, around the 60.4 percentile since 2006 [19]. Industry Important Data - **Pig Farming**: - The average price of external three-line pigs decreased from 10.48 CNY/kg to 10.26 CNY/kg during the reporting period [22]. - The breeding sow inventory reached 39.58 million heads by the end of January 2026, a slight decrease of 0.08% [22]. - The prices of corn and soybean meal have increased slightly, with corn priced at 2455.29 CNY/ton and soybean meal at 3396 CNY/ton as of March 19, 2026 [24]. - Profitability for self-bred pigs was reported at -283.15 CNY/head, while purchased piglets yielded a loss of -118.18 CNY/head [26]. - **Poultry Farming**: - The average price for meat chicken and egg chicken chicks rose to 2.92 CNY/chick and 3.5 CNY/chick, respectively [28]. - The average price for white feather meat chickens was 7.21 CNY/kg, with profitability at 0.11 CNY/chick, both showing a slight decline [32]. - **Aquaculture**: - The average wholesale price for crucian carp and carp was reported at 19.67 CNY/kg and 14.6 CNY/kg, respectively, both showing a slight decrease [36]. Industry Important News - The Ministry of Agriculture and Rural Affairs emphasized the need for greater efforts in promoting seed industry revitalization, aiming for technological self-reliance and control over seed sources, which is expected to benefit leading companies in the seed industry [39]. Company Important News - Notable companies to watch include: - Muyuan Foods (002714): A leading domestic pig farming company with cost and scale advantages [46]. - Wens Foodstuff Group (300498): A leader in both pig and yellow feather chicken farming with strong cost control [46]. - Haida Group (002311): A leading feed company expected to maintain steady market share growth [46]. - Reap Bio (300119): A leader in the animal health sector with a growing product matrix for pet health [46]. - Longping High-Tech (000998): A leading seed company with advanced transgenic reserves [46].