Livestock ETF saw intraday net purchases of 29 million shares, institutions say long-term positive trend in hog farming remains unchanged

The livestock sector experienced a significant decline today, with funds actively buying on dips. The Livestock ETF (159867) saw a net subscription of 29 million units during trading.

According to industry sources, there are no major changes in fundamentals. The main drag on leading stocks today is the heavy institutional holdings in breeding companies, as market weakness prompts funds to shift, affecting livestock stocks. Both pig and piglet prices are at low levels, and the trend of declining reproductive sows in March from third-party sources is expected to become consistent. From March to April, pig prices are likely to remain low due to three unresolved conditions: abundant pigs, heavy weights, and weak demand; the logic remains unchanged.

Institutions believe that in the long term, the positive trend in pig farming remains intact, and the combined effects of three factors are expected to accelerate capacity clearance: 1. Tight grain supply and rising feed costs: recent geopolitical conflicts have caused global grain supply tensions, leading to higher prices for feed raw materials like soybean meal, further increasing farming costs and accelerating the exit of unprofitable enterprises. 2. Prices below costs forcing capacity elimination: pig and piglet prices are both low, and the declining trend of reproductive sows from third-party sources in March is expected to become consistent, speeding up the clearance of excess capacity. 3. Continued policy efforts and orderly capacity reduction: (1) In early March, the Ministry of Agriculture and the National Development and Reform Commission held a special meeting with leading pig enterprises, with the control target for national reproductive sow inventory possibly further lowered to around 36.5 million; (2) The pig industry symposium on March 19 marked a shift from “market guidance” to “strong intervention,” with strict controls on enterprise expansion, bans on secondary fattening, and unified statistical standards, accelerating capacity reduction from policy measures.

As of 13:34 on March 23, 2026, in the CSI Livestock Breeding Index (930707), the component stocks were led by Tianma Technology, down 10.02%; Blue Biological, down 8.34%; Muyuan Foods, down 8.31%; Mianyang Biological, down 8.24%; Xiangjia Shares, down 8.22%. The latest price of the Livestock ETF (159867) is 0.61 yuan.

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

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