Cathay Haitong Securities: Politburo meeting once again mentions food and pigs to focus on the agricultural sector

The Zhitong Finance App learned that Cathay Pacific Haitong Securities released a research report saying that the July 30 Politburo meeting proposed stabilizing the production and prices of agricultural and livestock products such as pigs and promoting a steady increase in farmers' income, highlighting the importance of regulating pig production capacity. The bank pointed out that the price of pigs and piglets rose and then fell in July. The industry has been losing money for 10 consecutive months and production capacity loss continues; at the same time, hot weather may affect corn growth and stress-resistant seed varieties are expected to benefit, and the holding of the Asian Pet Show in August will also catalyze the pet sector. It is recommended to focus on multi-sector layout opportunities such as breeding, planting, and pets.

Cathay Pacific Haitong Securities's main views are as follows:

Pigs: Politburo meetings continue to focus on pig prices

The July 30 Politburo meeting proposed stabilizing the production and prices of agricultural and livestock products such as pigs to increase farmers' income steadily, and emphasized doing a good job of securing the supply and price of agricultural materials, taking good care of agricultural production, and seizing autumn grains and a good harvest throughout the year. Pigs and food continue to receive attention, and the importance of regulating pig production capacity is self-evident. Prices of pigs and piglets both rose and then fell in July. Monthly losses from self-breeding continued, and the industry's losses have entered its 10th month. The bank believes that in the future, although pig prices will gradually enter the peak season before the holiday season in late August, the industry will continue to reduce production capacity under the shadow of losses; it will continue to pay attention to changes in production capacity and continue to recommend the breeding sector.

Planting: Be wary of the effects of high temperatures on corn growth, and be optimistic about the performance of stress-resistant seed varieties

Recently, high-temperature weather above 35℃ has been frequent in major corn producing areas in China, which can easily affect the growth and development of corn. In particular, it causes high temperature and heat damage to corn during the smoking and spitting period, leading to a decrease in both pollination rate and yield and quality. In addition to field prevention measures such as sprinkling, irrigation, and reasonable top fertilizer, the bank believes that high-temperature resistant and high-yielding corn varieties also have a positive effect on reducing the risk of heat damage from high temperatures, and suggests paying attention to high-temperature resistant varieties.

Pets: Asia Pet Fair, a large-scale pet exhibition, was held in August to focus on new brand products

The Asian Pet Show is expected to be held in Shanghai in August 2026. As one of the largest pet exhibitions in China, this time, with a display scale of 320,000 square meters, bringing together more than 2,600 high-quality exhibitors from home and abroad, once again set a new record, demonstrating the booming momentum of the pet industry. Leading brands are expected to exhibit new products at the exhibition, which is worth paying attention to.

Risk Alerts

The risk of price fluctuations of agricultural commodities; the risk of aquaculture epidemics; the risk of natural disasters; the risk of changes in tariff policies; the risk of exchange rate fluctuations.