Spring planting fertilizer demand is strong, Grain ETF GFAN rises by 2.84%

As of 11:16 AM on February 24, the Shanghai Composite Index increased by 1.15%, the Shenzhen Component Index rose by 1.92%, and the ChiNext Index gained 1.99%. In terms of ETFs, the Grain ETF GF (159587) rose by 2.84%, with constituent stocks Hebang Biological (603077.SH) and Chuanfa Longmang (002312.SZ) hitting the daily limit. Additionally, Taho Holdings (301665.SZ), Yuntu Holdings (002539.SZ), Hubei Yihua (000422.SZ), Yuntianhua (600096.SH), Xingfa Group (600141.SH), Xin’an Shares (600596.SH), Yangnong Chemical (600486.SH), Chuanheng Shares (002895.SZ) all increased by over 5%.

News-wise, it is reported that spring field management is progressing in an orderly manner to ensure stable and abundant grain production. Currently, winter wheat is sprouting from south to north, marking a critical period for spring field management. Main producing areas are implementing targeted measures based on local conditions to guarantee stable and abundant grain output. As wheat enters the greening period, the peak fertilization season is approaching. The national supply and marketing cooperative system has purchased 20 million tons of fertilizer and is ensuring cross-regional transportation of agricultural supplies, speeding up distribution to grassroots outlets to ensure timely supply.

Guotou Securities states that by the end of 2025, genetically modified corn planting has expanded to 13 provinces, with an annual planting area of 30 to 50 million mu, accounting for 10%-15% of the total national corn area. With continued policy support, the penetration rate is expected to further increase in 2026, and the premium on genetically modified seeds will drive growth in related companies’ performance. Additionally, the promotion of insect-resistant/herbicide-tolerant traits will increase demand for certain herbicides (such as glyphosate, glufosinate, etc.) and insecticides.

Huayuan Securities believes that agriculture, as the foundation of the nation, is one of the few industries with “domestic supply shortages, declining prices in recent years, asset prices at bottom levels with capital exit,” and features “countercyclical asset premiums,” “industry logic that is relatively independent and coherent,” “the need to protect farmers’ income,” and “overall sector valuation at historically low levels,” making the sector’s allocation value significantly higher.