Agriculture: 2009 April-May Prices Of Agricultural Products And Investment Trend Of Enlightenment
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Agriculture: 2009 April-May prices of agricultural products and investment trend of Enlightenment

Data Comments: In the past the international market in January mainly due to agricultural prices and the strong depreciation of the dollar, in which corn, soybeans, cotton, barley and sugar prices rose 10%, 11%, 7%, 8% and 11%, with the dollar index over the same period 6 % decline in basically the same. Wheat and orange juice prices higher, acer black aspire one zg5 battery respectively, 22% and 19%, but the rice, milk powder and palm oil prices remain stable. Although the futures contract prices remained flat, but in May the U.S. Department of Agriculture cut production 08/09 quarter of corn, soybeans and sugar product inventory forecasting etc., making the future prices of agricultural products is expected to rise gains.

In addition to soybeans, the domestic market prices of major agricultural products abnormal smooth performance, in which prices of corn and wheat was up 1% and 4%, acer um08b72 laptop battery the same sugar, cotton and early indica rice prices declined slightly by 1%. High self-sufficiency rate and the spread at home and abroad are still evident (refer to the relative domestic price premium on the international market) resulted in differences in recent price movements at home and abroad, and the government reserves will be sufficient to reduce substantially the above-mentioned long-term prices of agricultural products in international market prices following the sharp the possibility of soaring.

Investment advice: 1. After half a year expensive efforts,acer blue aspire one a110l series the domestic rice, wheat, corn, sugar and cotton prices have reached or surpassed the national price, which means that the Government has in ensuring the basis of income State Reserve through the auction may stabilize prices of agricultural products so as to protect the conditions for downstream processing industries, Japan May 21 cotton Reserve announced that it would sell 1 million tons of cotton is an example of survival. Therefore, there is no advantage under the premise of valuation, A Unit of agriculture up to follow the trend of international market share is expected to take care of inflation.

2. To rely largely on imported raw materials for domestic processing enterprises: the upper reaches of the early agricultural products processing enterprises usually benefit from higher prices of raw materials, such as oils and fats processing business based China Agri-Industries Holdings (606.HK); and downstream food processing enterprises often damaged in acer blue aspire one a150l series laptop battery the prices of raw materials, such as palm oil prices to the fried food enterprises, barley prices on the beer business and the price of fish meal feed enterprises. At present, the Malaysian palm oil prices rose 62 percent six months ago, the Australian barley prices rose 36 percent six months ago, fish meal prices down 18 percent six months ago.

3. Although the domestic price of sugar rose to face further pressure, but six months ago compared with nearly 30% increase, which makes a profit since sugar prices since the second half of 2009 will be significantly improved, and is expected to climb in 2010 on a new high in recent years . Therefore, the Hong Kong stock market valuation, we have obvious advantages of the West, Wang sugar (2088.HK) and Dacheng sugar (3889.HK) still recommended rating, and the current valuation of A shares is not significant unexpected level of Nanning Sugar industry (000911.CH) and Tunhe COFCO (600737.CH) be cautiously optimistic.

4.4 month Chinese apple juice concentrate unchanged year-on-year export volume, export prices decreased slightly by chain, but to the bottom, and the spread between the price of orange juice up to nearly 40%. A strong rebound in prices is expected to make apple juice or processing enterprises will be improved fundamentals, which we recommend valuation is particularly dominant in 2009 and five months before the operating condition of the sea or fruit juice (359.HK).

5. The domestic market price of grain is now a pig 5.93,acer blue aspire one a150x series battery slightly higher than the warning level of 5.5; the deadline at the end of four live pigs, the volume of 455 million population, 410 million higher than the bottom line; to fan sow population accounting for 10.8% of the volume was higher than lower limit of 10%. These indicators show a rapid reversal difficult, time will be expected at the bottom of up to 4-5 months (May to September), pig slaughtering enterprises (including the development Shuanghui 000895.CH, and the general public Yurun 1068.HK Food PFH.SP) is still in the honeymoon period. China International Capital Corporation Limited

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