Pork-related stocks saw their declines intensify during the afternoon trading session. At the time of writing, shares of WH GROUP (00288) were down 4.17% at HK$8.51. COFCO JOYCOME (01610) shares fell 2.86% to HK$1.02, while MUYUAN (02714) shares dropped 2.73%, trading at HK$29.96.

The price movement follows a series of May production and sales reports released by numerous listed pig farming companies on the A-share market. The data indicates that the average selling price for hogs is generally below 10 yuan per kilogram, suggesting the industry remains in a volatile phase at the trough of its cycle.

Industry data shows that as of June 15th, the monthly average price was 9.50 yuan per kilogram. While the Dragon Boat Festival holiday provided some support for prices, demand is currently in its traditional off-season, making it difficult for hog prices to rise significantly.

Recent analysis notes that the national average price for hogs hit a low of 8.82 yuan per kilogram in April this year. At that point, the maximum loss per head for farmers reached 576.82 yuan, marking a ten-year extreme. Loss-making periods have now accounted for 49% of the current cycle's duration.

Pig futures also recently touched a near five-year low, falling to 9,055 yuan per ton. The sector is exhibiting new cyclical characteristics described as "low average price, weak price elasticity, and prolonged downturns," which are increasing the difficulty for companies to restore profitability.