Hebei wheat planting smooth amid good weather conditions
Wheat planting in Hebei province in northern China has been smooth since October this year thanks to good weather conditions.
The total wheat planting area in the province has totaled 33.54 million mu (2.24 million hectares) so far this year, up 33,000 mu (2,220 hectares) year on year.
“Precipitation was strong in early October and soil condition in wheat planting area was good,” Hebei province’s wheat expert Guo Jinkao said to state media.
Wheat output in Hebei province reached 14.39 million tons in 2020, accounting for nearly 11% of China’s total wheat production, according to data from the National Bureau of Statistics.
Meanwhile, Hebei also produces approximately 8% of corn in China.
Futures for feed ingredients strengthen due to rising demand
Futures for corn and meals firmed on Friday as companies’ willingness to replenish their stockpiles increased significantly despite weak demand.
The main corn futures on Dalian Commodity Exchange (DCE) jumped to the highest level in nearly six months. Soybean meal futures also traded to a two-week high.
Rapeseed meal futures on the Zhengzhou exchange also ticked higher against the backdrop of stock replenishment.
Moreover, oilseed futures were under pressure as the Argentinian government is rumored to have passed the long-waited stimulus program to boost soybean exports. According to traders, Argentina has prepared to offer a fixed exchange rate of 225 pesos per dollar to soybean farmers and exporters.
The program is expected to start next Monday. However, there has been no official announcement from the Argentinian government.
“It has been quiet recently, but most people are expecting [cash] premiums to fall,” one trader commented.
Meanwhile, oilseed futures continued to rise due to the expectation of lower production in 2022/23 marketing year.