Core Viewpoint - The agricultural, animal husbandry, and fishery sector showed strong performance on October 10, with the first agricultural ETF (159275) experiencing a price increase after a low opening, indicating positive market sentiment in this sector [1][5]. Market Performance - The agricultural ETF (159275) opened lower but quickly rebounded, achieving a maximum intraday increase of 1.5% and closing up 0.3% [1]. - Key stocks in the sector, such as Guannong Co. (up 6.89%) and Shengwu Co. (up 4.52%), led the gains, with several others also showing increases of over 3% [1][5]. Price Trends - National average pig prices fell to 12.55 CNY/kg as of October 7, a decrease of 1.6% compared to the pre-holiday period, following a 10% drop in September [2][3]. - The decline in pig prices has resulted in significant losses for farmers, with losses of 54 CNY per pig for self-bred pigs and 128 CNY for purchased piglets [2][3]. Policy and Industry Outlook - The National Development and Reform Commission, along with the Ministry of Agriculture, has signaled a clear policy direction towards reducing production capacity in the pig industry, which is expected to enhance market dynamics [3][4]. - The current low valuation of the agricultural sector, with the agricultural ETF's price-to-book ratio at 2.61, suggests a favorable time for investment [3][4]. Future Expectations - Analysts predict that the ongoing measures to counteract overproduction in the pig industry will lead to a gradual increase in pig prices in the medium to long term [4][5]. - The focus on improving quality and efficiency in the pig industry, along with the elimination of outdated production capacity, is expected to benefit financially stable producers [4][5].

Group 1 - The core viewpoint of the article emphasizes the government's ongoing guidance to the top 30 enterprises to stabilize prices and limit production through measures such as reducing breeding sows, lowering weights, and banning second breeding [1] - The policy aims to stabilize market expectations, reduce speculative operations, and promote supply-demand balance and healthy development in the industry [1] - With the pressure of pig prices on CPI increasing in July and August, and the accumulated supply from previous periods, there is a possibility of further policy intensification to accelerate industry capacity reduction [1] Group 2 - Under the dual influence of policy constraints and market mechanisms, the domestic breeding sow inventory is expected to stabilize after a reduction [1] - Improvements in breeding efficiency, strengthened cost control, and rigid demand from consumers are expected to support the pig farming industry entering a prolonged profit cycle with reduced volatility [1] - The breeding sector may have gradually entered a configuration range, and interested investors are encouraged to pay attention to the marginal changes in the breeding ETF (159865) [1]