Most Agriculture stocks in the Hong Kong market rose as of the time of writing,$FIRST TRACTOR (00038.HK)$Increased by over 14%,$DEKON AGR (02419.HK)$up over 7%,$SHIYUE DAOTIAN (09676.HK)$Increase of nearly 6%,$COFCO JOYCOME (01610.HK)$Rising over 6%.

In terms of news, recently, the Central Committee of the Communist Party of China and the State Council issued the "Plan for Accelerating the Construction of a Strong Agricultural Country (2024-2035)." This plan aims to improve the long-term mechanism for promoting comprehensive rural revitalization, enhance the institutional mechanisms for urban-rural integration development, advance agricultural modernization and rural modernization together, maintain a higher level of national food security baseline and the red line for arable land protection, accelerate the construction of livable and workable beautiful villages, effectively promote comprehensive rural revitalization, and rapidly build a strong agricultural country with robust supply guarantees, strong technological equipment, strong operational systems, strong industry resilience, and strong competitiveness, allowing farmers to live a better life, thereby providing strong support for the comprehensive advancement of national strength and the great cause of national rejuvenation through Chinese-style modernization.

Additionally, on April 4, the Tariff Commission of the State Council announced that, with the approval of the State Council, starting from 12:01 PM on April 10, 2025, tariffs will be imposed on imported Commodities originating from the USA. Caitong Securities indicated that the tariff retaliation may push grain prices up, highlighting the risk-hedging attributes of the agriculture sector. The Pacific Securities stated that in the short to medium term, the tariff hikes may lead to a decrease in agricultural product imports, especially for varieties with significant imports from the USA, such as Soybean and Corn, thus driving up the prices of these related agricultural products. It is advised to focus on thematic investment opportunities in anticipation of rising grain prices.

Editor/Rocky