Pork prices rise after storm, livestock stocks rise as stock market falls

Since the beginning of the week, contrary to the gloomy market trend, livestock stocks have maintained their upward momentum amid rising pork prices after Typhoon Yagi.

Bright spot of livestock stocks

In recent days, after storm No. 3 (storm Yagi), pork prices in all provinces and cities increased and have maintained this trend until now.

Specifically in the North, the price of live pigs in Hanoi continues to be 67,000 VND/kg, the highest price in the region. The remaining provinces and cities have common prices at 65,000 - 66,000 VND/kg. In the Central and Central Highlands regions, the price of live pigs increased slightly, up 1,000 VND, to about 63,000 VND/kg. In the South, the transaction price is in the range of 62,000 - 65,000 VND/kg.

Faced with positive developments in the national pig market, livestock stocks quickly benefited and "caught the wave".

DBC shares increased sharply to the price range in July (Photo: SSI iBoard)

Typically, DBC stock (Dabaco Vietnam Group, HOSE) showed an upward trend in the first session of this week, going against the strong downward trend of the market.

The stock price exceeded the threshold of 29,000 VND/share, up slightly by 0.34%, to 29,250 VND/share in today's session (September 12).

In the first 6 months of this year, DBC recorded strong business growth with after-tax profit reaching 218 billion VND, 35.7 times higher than the same period last year of 6.1 billion VND.

Similarly, PAN shares (Pan Group, HOSE) also maintained their upward momentum since the beginning of the week, surpassing the price range of VND23,000/share. Although, at the end of today's session, PAN maintained a flat state at the price of VND23,500/share, this was the result of a strong increase from the beginning of the week until now of 4.7%.

BAF increased its value by 8.4% on the stock exchange since the beginning of the week (Photo: SSI iBoard)

BAF (BAF Vietnam Agriculture, HOSE) increased sharply from VND 17,750/share to VND 19,250/share, an increase of 8.4% after only 4 trading sessions. Thanks to this fluctuation, BAF shares returned to the price range after 2 months of "shaking".

Previously, in the session of September 10, the livestock stocks group suddenly increased sharply. Specifically , DBC increased by 2.5% with a trading volume of up to 15 million shares with a total trading value of over 400 billion VND, MML (MeatLife, UPCoM) increased by 6.3%; BAF increased by 4.6% with more than 10 million units matched,...

In the "gloomy" situation when VN-Index lacked momentum for the next increase, livestock stocks became one of the "bright spots" of the market since the beginning of the week after the effects of storm Yagi and its circulation caused damage to livestock activities, pushing up the trend of increasing food prices.

At the close of today's session, the VN-Index recovered slightly to 1,256.35 points, up 3.08 points with 218 stocks increasing and 163 stocks decreasing. However, liquidity attracted attention when it reached a record low since May 2023, reaching only over VND 10,470 billion, down 17% compared to the previous session.

What is the driving force for livestock stocks?

Given the above positive developments, Mr. Pham Thanh Tien, Investment Consultant, Mirae Asset Securities, commented that livestock stocks are receiving many positive factors, pushing prices up.

Specifically, pork prices have maintained an upward trend since the beginning of the year, with the average price nationwide increasing from VND50,000/kg (beginning of the year) to VND64,000/kg (current). At the same time, the African swine fever outbreak at the beginning of this year has caused farmers and businesses to limit herd restoration, so the upward trend will continue as long as the epidemic continues.

The recent storms and floods in the North have somewhat reduced the supply of pork to the market, because in reality, domestic supply is in short supply, and the amount of imported pork has also increased dramatically in the first 8 months of this year. Since then, prices have been pushed up positively.

In addition, prices of commodities serving animal feed production: Corn and soybean meal are at rock bottom since 2022. This helps to significantly save production costs, supporting the profit margins of livestock companies to maintain and expand profit margins if they can manage disease risks and provide a large amount of pork for sale to the market.

In the short term , livestock stocks are being supported mainly by a slight increase in the price of live pigs in the North due to the impact of storm Yagi and floods.

Source: https://phunuvietnam.vn/gia-thit-lon-tang-sau-bao-co-phieu-nhom-chan-nuoi-tang-khi-thi-truong-chung-khoan-giam-20240912184909689.htm