Renewed government focus on seed technology drives equity rally

Advances in seed technology remain an intense area of focus within China with the Ministry of Agriculture announcing new areas of focus.  

The Ministry’s most recent notice mentions the ‘urgent need’ to develop shorter season rapeseed varieties. These early-maturing rapeseed varieties are intended to be used in a triple crop rotation in southern China with two crops of rice being harvested and then a late crop of rapeseed.  

Currently, rapeseed is primarily planted in central China along the Yangtze River delta. As part of the government’s efforts to increase domestic oilseed production, the Ministry of Agriculture is looking at options to encourage planting further south.  

Other seed technology efforts mentioned in the notice include the need to develop seeds that work better on saline-alkali land and soybeans which have higher oil and protein content.  

Seed industry stocks have rallied over the past two days as investors bet the combination of global grain price volatility and a historic summer drought will redouble the government’s focus on developing new seed technology.