CICC: It is recommended to take advantage of market dips for long-term investment in agricultural products

Golden Ten Data reported on July 5 that, according to a research report by CICC, after the 2023-2025 global agricultural product inventory accumulation and a deep price correction cycle, the agricultural product sector may reach an inflection point in 2026. Prices across all categories will have a solid bottom, establishing a trend where rises are easier than falls. Overall, by the second half of 2026, there may be no foundation for a unilateral decline in global bulk agricultural products: costs will solidify the bottom, supply contraction will become a trend, weather factors will provide additional momentum, and demand will create room for upward movement. The sector as a whole may gradually enter an upward cycle, with the order of sector performance being oils and fats, cotton, natural rubber, and sugar > soybeans, corn > zero. Currently, the sector's valuation has reasonably corrected in the second quarter. It is recommended to take advantage of low points for medium- to long-term positions in agricultural product bullish trends and to seize the stage-wise recovery and trend opportunities for different categories.