The most important reason for the decline in pig prices in the early stage is that the consumption of pork in China has remained basically stable every year. However, the high price of pork last year induced many companies and farmers outside the industry to enter this industry, which led to the slaughter of pigs far exceeding the supply this year, thus making the price fall all the way. According to statistics, the loss of self-feeding pigs is as high as 526.36 yuan per head, and the loss of buying piglets is as high as 570.78 yuan per head.

The loss of raising pigs is too large, and some pig farmers are reluctant to sell them, resulting in a decrease in the amount of slaughter and a recent rebound in pork prices. However, in my personal opinion, pigs and raw materials are different. Raw materials are stored at a little storage cost, and pig mouths consume a lot every day. After a while, farmers will still sell at a loss. Moreover, many people from outside the industry entered last year, grabbing the share of large pig farmers such as Muyuan and New Hope. They have worked in this industry for many years and can control the cost very low. Therefore, they hope that the price of pigs will fall for a long time and continue to sell pigs, so that people outside the industry have to cut their meat out. At that time, the price of meat may go up.

Compared with investing in individual stocks, the fund covers more stocks, which can spread the risk of stepping on individual stocks to a certain extent. However, it should be noted that investment funds are not risk-free, especially index funds or funds with high shareholding concentration, and there may be a big retracement in the short term. From the beginning of the year to the middle of March, the net value of Yin Hua CSI Agricultural Theme ETF rose sharply and fell sharply, which made us have to be vigilant. It is very difficult to make short-term timing in the investment market.

Considering that industry index funds or actively managed funds with relatively high industry share are greatly influenced by the whole industry, when investing in such funds, we should analyze the long-term trend of the industry, pay attention to the fundamentals of the industry, and lengthen the holding period instead of blindly chasing high.