On March 25, corn, planting, genetically modified and other agricultural related sectors were among the top gainers. As of press time, Zhongnongfa Seed Industry Group Co.Ltd(600313) rose by the limit, Jiangsu Provincial Agricultural Reclamation And Development Co.Ltd(601952) , Hainan Shennong Technology Co.Ltd(300189) , Heilongjiang Agriculture Company Limited(600598) and other stocks followed suit.
Recently, the Ministry of agriculture and rural areas and the Ministry of finance have made clear the key work of grain production and a package of support policies in 2022, requiring all localities to go all out to ensure a bumper harvest of summer grain and wheat, do everything possible to expand the planting of soybean oil, pay close attention to stabilizing the price and supply of agricultural materials, unremittingly pay close attention to agricultural disaster prevention, disaster reduction and relief, stabilize the basic situation of agriculture, and provide strong support for promoting the steady and healthy development of economy and society.
In addition, on the 23rd, Premier Li Keqiang inspected the Ministry of agriculture and rural areas and presided over a symposium, emphasizing that spring management and spring sowing are now being carried out from south to north. We should promote the transformation of weak seedlings into strong ones through scientific topdressing, and strengthen the follow-up field management to ensure a good harvest of summer grain. We will pay close attention to fine spring ploughing and preparation, strive to implement the spring sowing area, and encourage places where conditions permit to grow a variety of double cropping rice, so as to ensure that the grain output this year will remain above 1.3 trillion Jin.
On March 1 this year, the newly revised seed law was officially implemented. The market generally believes that it will build a legal cornerstone for the development of China's seed industry. With the strengthening of the copyright protection of the seed industry, China's seed industry will usher in significant development.
China International Capital Corporation Limited(601995) said that the increase in input costs caused by the rise in the prices of crude oil, chemical fertilizer and other bulk commodities is the key. Superimposed on the upward trend of Shenzhen Agricultural Products Group Co.Ltd(000061) price in the external market, it catalyzes the bullish sentiment in the market, which is expected to drive the further rise of Shenzhen Agricultural Products Group Co.Ltd(000061) prices such as corn. China's seed production industry has ushered in changes and is gradually adjusting and strengthening in many aspects, including strengthening the protection and utilization of seed sources, strengthening innovative protection, and promoting the development of biological breeding technology. Agriculture, especially seed production industry, will benefit from this, driving the improvement of investment sentiment.
Zheshang Securities Co.Ltd(601878) said that with the intensive introduction of favorable policies and the improvement of supply and demand fundamentals, the industry has ushered in an upward cycle. It is expected that high-quality seed enterprises will usher in a performance release period in the next few years, the curtain of genetically modified organism breeding will open, the corn seed industry will usher in strong capacity expansion expectations, and the leading seed enterprises may usher in a high-speed growth stage.
