Soybean auction kicks off; China greenlights Russian wheat imports

China to start auctioning soyoil, soybean next week

China’s state-owned stockpiler Sinograin said it will begin selling national reserves of imported soyoil and domestic soybeans next week, reacting quickly to government announcement earlier this week and further confirming market rumors.

Nearly 12,700 tons of soyoil reserve imported in 2020 will be auctioned across ten provinces next Monday, and deliveries will be made between March 1 and April 19 depending on the settlement location.

In addition, Sinograin will host auctions of almost 24,000 tons of 2019 harvests of domestic soybeans in Heilongjiang and Jilin provinces in northeastern China. These beans will be delivered between March 1 and March 28 this year.

The latest round of auctions echoed market rumors of the Chinese stockpiler to auction 3-5 million tons of soybeans and 300,000 tons of soyoil. But the figures have not received official confirmations.

Meanwhile, Sinograin will auction 7,000 tons of rapeseed oil (2022 crop) in southern China this Friday for deliveries in May and June this year.

State auctions came at a time when edible oil futures in China has hit their new record high with the main rapeseed futures contract at 12,759 yuan/ton (US$2,025/ton) and the most liquid soyoil contract at 10,506 yuan/ton (US$1,668/ton).

China approves imports of Russian spring wheat

China’s Customs agency has approved the import of Russian spring wheat grown in areas without dwarf bunt disease, according to an official announcement this Wednesday.

In a Twitter post, state-media outlet Global Times said the phytosanitary agreement was struck in early February.

According to the most recent USDA FAS update, spring wheat production in Russia is estimated at 23 million tons in 2021/22 marketing year versus winter wheat production at 52.5 million tons.

China imported less than 49,000 tons of Russian wheat in 2021 calendar year, which was less than 1% of total Chinese wheat imports that year.