Understanding the Market | Dairy Stocks Surge in the Morning as Raw Milk Prices Stabilize Recently, Industry De-stocking Expected to Accelerate in the Second Half of the Year

Dairy stocks rose broadly in the morning, with YOURAN DAIRY up 5.74% and CH MODERN D up 3.36%. After a four-year downward cycle, raw milk prices have recently stabilized at a certain stage, with a slight increase in the average price in major producing areas. Guosheng Securities pointed out that the narrowing decline in milk prices will lead to profit recovery, although the industry still faces loss pressure and the trend of capacity reduction continues. Tianfeng Securities believes that milk prices are supported by holiday demand in the short term, but the trend of destocking continues, and the turning point of the milk price cycle is worth looking forward to