Strong wheat auction result; Prices update; Hog futures sink

Wheat auction sees strong post-holiday result

The national reserve wheat auction on Wednesday saw 98.7%, or 139.5k tons, purchased by the market. Prices ranged from 2,450 to 3,050 yuan per ton, with the average price at 2,829 yuan per ton.

Prices have continued to see during the first three auctions of this year, with the average price for the January 12th auction at 2,988 yuan per ton and the auction on the 18th at 2,961 yuan per ton.

Although the average price fell, this was mostly due to lower prices for smaller lots of white wheat and the changing makeup of the auctioned supply. In the last auction, 39.6k tons of more expensive white wheat were auctioned in Xinjiang. This round of auctions saw Xinjiang also auctioning cheaper common wheat which brought down the average price.

Henan, the biggest wheat-producing province, represented 86k tons of this week’s auctioned volume. Average prices there were 2,943 yuan per ton, up 4 yuan per ton compared to pre-holiday levels. 

Livestock and feed prices update for 4th week of January

Hog futures sink amid weak post-holiday demand, soybean futures dip

Futures for live hogs in China ended the week in a bearish tone on Friday with the main contract on the Dalian exchange down almost 3% day on day to touch a one-year low as demand after the new year holiday remained poor.

However, domestic hog supply is strong, adding more bearish pressure for the sector.

In terms of oilseeds, soybean futures in China dipped on Friday after reports of better farmer sales in Brazil which triggered a flurry of Chinese purchases earlier this year, easing the short-term supply tightness.

In the edible oil sector, futures for the three major types rebounded strongly after the selloff earlier this week caused by rumors of state-backed destocking efforts.