Beef cattle super cycle trend is clear, Agricultural ETF Huaxia (516810) receives net capital inflows for 10 consecutive days

On March 18, the agriculture sector overall experienced a decline with narrowing losses in the afternoon. As of 1:38 PM, the Agriculture ETF Huaxia (516810) fell 0.98%. Among the holdings, stocks such as Limin Shares, Hainan Rubber, Taihe Group, and Yasheng Group all declined. Funds are actively seeking sector rebound opportunities against the trend, with the Agriculture ETF Huaxia (516810) experiencing net inflows for 10 consecutive days, accumulating over 100 million yuan in capital.

On the news front, prices across the beef cattle industry chain have increased month-over-month. This week (March 5-12), the fattening bull price was 25.75 yuan/kg, up 7.71% year-over-year; calf prices reached 34.27 yuan/kg, up 39.48% year-over-year, with price increases exceeding market expectations. Milk prices remain in the low adjustment phase; as of March 5, fresh milk was priced at 3.03 yuan/kg, unchanged from the previous period but down 1.62% year-over-year.

According to Tianfeng Agriculture Research, the domestic beef cattle industry has entered a super cycle. The liquidation of dairy cows is nearing completion, and industry cycle turning points are emerging. The sector’s investment value remains optimistic. Under the clear trend of a super cycle in beef cattle and the nearing end of dairy cow liquidation, companies with maternal cow resources and adopting a “milk-meat linkage” model, as well as beef traders with strong resource endowments, are expected to have enhanced profitability. Institutions recommend focusing on leading enterprises in beef cattle breeding and dairy products with production capacity advantages.

The Agriculture ETF Huaxia (516810.SH) holds leading stocks across multiple sub-sectors such as agrochemicals, planting, and pig farming, benefiting from multiple resonances including anti-involution, chemical cycle, seed industry security, and pig cycle reversal. Currently, its valuation is at a historic low. Investors can leverage ETFs to position for agricultural rebound opportunities at low entry thresholds, with advantages of risk diversification, passive index tracking, transparent holdings, and stable style. Connect A: 016077; Connect C: 016078.

Daily Economic News

(Edited by: He Chong)

【Disclaimer】This article reflects only the author’s personal views and is not related to Hexun. Hexun website remains neutral regarding the statements and opinions expressed in this article and does not provide any explicit or implicit guarantees regarding the accuracy, reliability, or completeness of the content. Readers are advised to use it for reference and bear all responsibilities themselves. Email: news_center@staff.hexun.com