JinJian Cereals Industry Co Ltd

On September 17, the A-share grain sector rose again, with Jinjian Rice Industry surging to its daily limit-up and its latest market value exceeding 8.3 billion yuan. In the most recent month since August 17, Jinjian Rice Industry has recorded nine limit-ups in total, with its share price climbing from around 6 yuan per share to a stage high of 15.07 yuan per share, and the latest share price at 13.02 yuan per share. On the same day, stocks such as Dunhuang Seed, Wanxiang Doneed, Shennong Seed, Qiule Seed, and Kangnong Seed also hit limit-ups or rose sharply. In terms of news, the Ministry of Agriculture and Rural Affairs recently issued the National Crop Farming Development 15th Five-Year Plan, proposing that by 2030 China's comprehensive grain production capacity will reach about 1.45 trillion jin, firmly safeguarding the bottom line of basic self-sufficiency in grain and absolute security of staple food, and making arrangements around improving grain production capacity, consolidating soybean and oilseed production, stabilizing cotton and sugar production, and enriching the "vegetable basket" product supply. Jinjian Rice Industry stated in its investor relations activity record disclosed on September 2 that in 2025 the company completed the rotation task of reserve grain with high quality at 22,500 tonnes. As of the end of 2025, its rice processing capacity including commissioned production was 228,000 tonnes, flour product processing capacity was 121,000 tonnes, and edible vegetable oil processing capacity including commissioned production was 212,000 tonnes. It also said that current inventories of grain and oil, dairy products, and snack foods are within a reasonable range, and as of the end of June 2026, inventories of major finished products had all declined compared with the beginning of the year.

JPMorgan recently issued a report warning that the next global food crisis may be brewing and could erupt next year. A-share agricultural stocks responded with broad gains on August 17, with Jinjian Rice hitting the daily limit up, and Qiule Seed, Shennong Seed, Kangnong Seed, Dunhuang Seed, and Shenzhen Cereals Holdings following higher. The report expects global food price inflation to rise from 2.8 percent in the first half of this year to 5 percent in the first half of next year. It also argues that Middle East conflict has disrupted passage through the Strait of Hormuz, and that a strong El Niño could reduce crop yields. The combination of these factors will hit agricultural production and keep food prices elevated through the first half of 2027. Nora Szentivanyi, the economist who led the research, said global crop prices have not yet peaked because transport of agricultural inputs such as fertiliser has been affected. This year's shock to global energy supply could double the impact of a super El Niño on food prices. The report also notes that agriculture in parts of Asia, Africa, and Latin America is more sensitive to weather changes, and food accounts for a higher share of household consumption there. Emerging market economies will be hit hardest by this shock. Last year, about 645 million people worldwide faced hunger, and about 2.1 billion people faced moderate or severe food insecurity, accounting for 25.8 percent of the global population.