Agriculture ETF E Fund (562900) underlying index rises nearly 3%, and the destocking of pig farming is expected to accelerate.

As of 10:45, the CSI Modern Agriculture Theme Index rose by 2.7%. Among the index components, Juxing Agriculture and Animal Husbandry increased by over 9%, Shennong Group rose by over 6%, and Zhongmu Shares and Hainan Group increased by over 5%.

The current pig market has entered a cyclical bottom range, with pig prices continuing to operate at low levels. According to monitoring, in late March, the nationwide lean pig average price once fell below 9.62 yuan per kilogram, a decline of over 27% from the early-year high. Based on current feed costs, the industry’s average breeding profit is about -280 yuan per head, with ongoing losses lasting over half a year. The current pig-to-grain ratio is approximately 3.88:1, below the first-level warning line for excessive pig price decline set by the National Development and Reform Commission.

From historical patterns, a persistently low pig-to-grain ratio usually indicates the industry is entering a deep loss phase, with a significant increase in capacity reduction speed. Against the backdrop of capacity regulation and market-driven capacity reduction, leading companies’ cost advantages are further highlighted, and the breeding sector is expected to see a valuation recovery window.

The CSI Modern Agriculture Theme Index covers core agricultural sectors such as pig breeding, broiler breeding, planting, and feed, with the breeding industry accounting for about 50%. The E Fund Agriculture ETF (562900) tracks this index, with an expense ratio of only 0.15% per year, helping investors efficiently seize valuation recovery opportunities in the breeding sector.

Daily Economic News