The planting industry chain continued its strong rally on Tuesday, with shares of COFCO Technology, Hainan Rubber, Yasheng Group, Dunhuang Seed, and Sufeng Kenong hitting the daily limit. Jinjian Rice climbed over 8%, while Wanxiang Denong and Yuan Long Ping High-Tech Agriculture also posted notable gains. The benchmark CSI All-Agriculture and Animal Husbandry Index, tracked by the Huabao Agriculture ETF (159275), rose 1.57%. As of September 7, 2026, the index's component weights include COFCO Technology at 0.9%, Hainan Rubber at 2.16%, Yasheng Group at 1.12%, Dunhuang Seed at 0.68%, Sufeng Kenong at 0.99%, Jinjian Rice at 1.2%, Wanxiang Denong at 0.43%, and Yuan Long Ping at 2.07%.
On the news front, the World Meteorological Organization confirmed on September 3 that an El Ni帽o event has emerged and is expected to develop into a super El Ni帽o over the coming months. The latest forecast indicates a near 100% probability that the event will persist until February 2027, with peak intensity anticipated around the end of 2026. Analysts point out that the ongoing intensification of El Ni帽o could push it into a super-strength phase from the fourth quarter through year-end, raising the risk of extreme weather and potentially catalyzing opportunities in the planting and seed sectors.
With domestic autumn crops entering the critical period of grain filling, maturation, and harvest, attention is turning to the potential impacts of prolonged rainfall, waterlogging, and high temperatures on yields and quality. Extreme weather is likely to boost the value of high-yield, stress-resistant, and broadly adaptable crop varieties. Combined with the continued advancement of genetically modified crop commercialization, leading seed companies with strong R&D capabilities, diverse germplasm reserves, and robust distribution channels are expected to gain heightened market focus.
From a valuation perspective, the agriculture and animal husbandry sector remains at relatively low levels, making it a potentially attractive entry point. Data from Wind shows that as of September 7's close, the price-to-book ratio for the CSI All-Agriculture and Animal Husbandry Index stood at 2.49 times, placing it at the 32.16th percentile over the past five years, underscoring its long-term value proposition.
Looking ahead, Orient Securities notes that commodity price increases have already transmitted to the agricultural sector. From a fundamentals standpoint, the upward trend in grain prices is firmly established, with both planting and seed industries showing positive momentum, highlighting significant investment opportunities in large-scale farming. As El Ni帽o intensity expectations rise, tropical cash crops such as natural rubber, sugar, and palm oil could see expanded price upside.
For investors seeking one-stop exposure to the full agriculture and animal husbandry value chain, the Huabao Agriculture ETF (159275) offers a comprehensive solution. According to CSI Index data, the ETF passively tracks the CSI All-Agriculture and Animal Husbandry Index, which includes leading hog farming companies and covers key sub-sectors such as feed, grain planting, and animal health products. Off-market investors can also participate through the Huabao Agriculture ETF Feeder Fund (Class A: 013471, Class C: 013472).
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