Xinjiang grain output rises for 7th year; Soybean futures hit 2-yr low

Grain output in Xinjiang rises for seven years straight

Total grain output in China’s northwestern province of Xinjiang totaled 18.13 million tons this year, up 4.5% year on year, according to data from the National Bureau of Statistics.

Total planting areas in the province expanded 2.6% year on year to 36.5 million mu (2.43 million hectares).

The average yield was 497 kg per mu (7.45 tons per hectare), up nearly 2% year on year, ranking second in the country.

Soybean futures hit 2-yr low amid bumper harvest, hog futures rebound to 1-wk high

Oilseed futures in China traded lower across the board on Thursday with soybean futures on the Dalian Commodity Exchange (DCE) leading the selloff.

The most liquid No.1 (non-GMO) soybean contract slumped to the lowest level since November 2020 as short-selling interest continued to increase.

The No.1 soybean contract is used as a proxy for domestic soybean prices as the vast majority of soybeans planted domestically in China are non-GMO.

As domestic output in 2022 is estimated to jump to more than 20 million tons compared to 16 million tons in 2021, non-GMO soybean futures have been trading in a downward trend since the start of the second half of this year.

The No.2 (GMO) soybean futures on DCE also edged lower on Thursday despite lingering concerns about dry weather in Argentina which could cut its soybean production.

The main contract is currently trading near the lowest level in a month.

Edible oil futures also slid on Thursday as the gradual reopening from zero-Covid measures failed to boost consumer demand.

On the contrary, live hog futures continued to rally on Thursday with the main contract reaching the highest level in a week. The main contract rose for three consecutive sessions due to rumors of government purchases to restock the national pork reserve.