Live pig prices continue to decline, production capacity adjustment efforts intensify, livestock farming ETF Ping An (516760) attracts fund attention at low levels

As of March 24, 2026, 13:35, the components of the CSI Livestock Breeding Index (930707) showed mixed gains and losses. BlueBiotech led the gains with a 3.38% increase, Jinxinnong rose 3.32%, and Meinong Biological increased 2.60%. Muyuan Foods led the decline. The latest price of the Livestock ETF Ping’an (516760) is 0.63 yuan. (The stocks listed above are only index components and do not constitute specific recommendations.)

In terms of liquidity, the Livestock ETF Ping’an had an intraday turnover rate of 3.03%, with a transaction volume of 4.4239 million yuan. Looking at a longer period, as of March 23, the average daily trading volume of the Livestock ETF Ping’an over the past month was 9.5214 million yuan.

On the news front, recently, pig prices have continued to come under pressure. The average price of external three-way cross pigs nationwide has fallen below 10 yuan per kilogram, at 9.87 yuan/kg on March 20, down 1.60% week-over-week. The profit margins for self-breeding and external purchase of piglets in the industry are at -297.68 yuan per head and -141.48 yuan per head, respectively, with losses deepening. Additionally, the National Development and Reform Commission and the Ministry of Agriculture and Rural Affairs have jointly held a symposium with pig farming companies, clearly stating that current prices have entered an over-decline warning zone. They have launched central frozen pork stockpiling and local synchronized stockpiling efforts, while requiring companies to scientifically reduce the breeding stock of sows and control slaughtering in an orderly manner. The official capacity regulation efforts have been significantly strengthened, which is expected to accelerate industry de-capacity and lay a solid foundation for a future cycle reversal.

Guojin Securities pointed out that pig prices continue to decline, and overall supply-side pressure may still allow for further price drops. Currently, the average weight of pigs is higher than in previous years, and the average slaughter weight may continue to decrease, with the industry actively slaughtering. From the supply perspective, total slaughter volume in February is expected to have slightly increased, and there is still supply support before the holiday season. Pig prices may continue to decline around the Spring Festival. Policy-driven capacity reduction may continue, and the ongoing losses in the sector support the logic of capacity reduction and the expectation of higher pig prices next year. In the short term, pig prices still have room to fall. Recently, industry capacity has decreased under policy regulation and supply pressure, and prices have already fallen below the full cost line, with overall losses leading to capacity de-capacity. Currently, the sector’s sentiment is stabilizing at a low point. In the medium to long term, the pig breeding industry still maintains relatively good central profit margins. After African swine fever, the industry’s rapid expansion includes many low-quality capacity additions, resulting in significant cost variance. Leading companies are generating ample excess profits, and it is recommended to focus on low-cost, high-quality enterprises.

The Livestock ETF Ping’an closely tracks the CSI Livestock Breeding Index, which selects listed companies involved in livestock feed, veterinary drugs, and breeding operations as samples to reflect the overall performance of livestock breeding-related listed companies.

Data shows that as of February 27, 2026, the top ten holdings of the CSI Livestock Breeding Index (930707) are Hainan Big Group, Muyuan Foods, Wen’s Food, Zhengbang Technology, Plum Biological, New Hope, BioShares, North Agriculture, SanNong Development, and Lihua Shares, accounting for a total of 66.76% of the index weight.

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