Muyuan Foods Group Co.,Ltd. (02714) shares fell more than 3%, trading at HK$31.62 as of press time, down 3.6%, with a turnover of HK$50.014 million. Market sentiment reflects that hog prices entered a correction channel since mid-July, now oscillating at a bottom consolidation phase after a high retreat. As of July 31, the national average price for three-way foreign-breed live pigs stood at 10.28 yuan per kilogram, down 1.11 yuan per kilogram from the early July peak, a drop of 9.75%.

Looking ahead, Kaiyuan Securities suggests that short-term strength in the fat-pig price spread and retail farmers' reluctance to sell may provide some support to hog prices. However, deferred hog volumes from July, planned increases in large-scale farms' August output, and the upcoming realization of earlier second-litter pig sources are all likely to cap price upside. Meanwhile, the July Central Politburo meeting expanded its phrasing on the pig breeding industry from "stabilizing pig and other agricultural product prices" in the April meeting to "stabilizing pig production and prices." SDIC Securities believes this shift may indicate the policy focus moving from "prices" to "production." The brokerage predicts that, under the dual pressure of policy guidance and market-driven losses, pig breeding capacity could accelerate non-linearly. Considering that the sow herd began a significant sustained reduction from Q2 2026, and given that the transmission from sow capacity to market-ready pig supply takes about 10 months, Q1 2027 could mark the inflection point for a profit turnaround in pig farming.