Flight rebound; futures fall

Domestic flight volumes in China have rebounded following the lifting of zero Covid policies. February domestic flight volumes were up 36% year on year to 42.5 million passengers. This is down 11% from pre-Covid levels. Laying poultry sees boost in profitability Profitability for laying hens has doubled in the past month as egg prices riseContinue reading “Flight rebound; futures fall”

Tight broiler supplies; futures continue decline

Poultry industry financial results show strong growth and tight supply Over the past week, several publicly listed companies involved in broiler chicken production have reported very strong growth in revenue in February. Revenue for Yisheng was up 245%, Minhe was up 308%, Shengong Development’s poultry segment revenue was up 84%, Huatong was up 155% BroilerContinue reading “Tight broiler supplies; futures continue decline”

Futures Commentary; Corn falls sharply

Futures were mixed on Tuesday, but corn sold off sharply on extremely high volume. May corn futures volume was 543k contracts, the highest volume in the front-month contract since July of 2022. While there were some fundamental factors attributed to the sharp decline, this mostly appears to be long liquidation after the market failed toContinue reading “Futures Commentary; Corn falls sharply”

Poultry revenue spikes; wheat auctions; futures slump

Poultry producer revenue spikes Yisheng, a poultry producer, announced that its sales of chickens in February were 50.0 million, and this generated revenue of 270 million yuan. This is up 7.7% and 244.5% respectively as high poultry prices helped boost revenue. Monthly changes for these figures were -0.2% and 58.4%. Wheat auctions see prices mostlyContinue reading “Poultry revenue spikes; wheat auctions; futures slump”

Snowfall in wheat areas; Futures mixed

Winter wheat areas see beneficial precipitation but worries about freeze damage Over the past 24 hours, most of Henan received 10-25mm of precipitation while southern Hubei and eastern Shandong received 0-10mm. Soil moisture in the winter wheat regions was generally still good, but at the beginning of the week, the National Meteorological Center was warningContinue reading “Snowfall in wheat areas; Futures mixed”

Futures fall; Henan hog farms

Fake Thai rice draws regulatory attention Adulterated rice has become a hot topic following an exposé as part of China’s Consumer Rights Day on March 15th. Each year, state broadcaster CCTV runs a two-hour primetime special looking into deceptive or illegal business practices which harm consumers. This year has included shoddy cell phones, unapproved cosmeticContinue reading “Futures fall; Henan hog farms”

Retail sales rise; futures commentary

Retail sales break three-month decline Retail sales data rose 3.5% year on year for the period including January and February. This is the first year on year growth seen in retail spending since September 2022. Retail sales saw year on year declines from March through May last year, and from October through December. Restaurant spendingContinue reading “Retail sales rise; futures commentary”

Price updates; futures fall

National Bureau of Statistics – Price Update Livestock & feed prices update Futures Commentary Agriculture futures continued to fall on Tuesday, with the exception of hogs and eggs. Hogs saw aggressive short covering in the afternoon session after making new contract lows on Monday. Even with this strong rally, prices are still below their ThursdayContinue reading “Price updates; futures fall”

Agriculture futures mostly down again on Monday

Hog futures continued to fall, and the May 2023 contract made new contract lows. Spot prices were also weaker over the weekend and there remain worries about downstream demand. Soybean oil also fell to start of the week, but saw open interest declining as it neared the bottom of its trading range and crushing volumesContinue reading “Agriculture futures mostly down again on Monday”

Chongqing new grain port, futures fall

Chongqing announces first direct grain port The first port authorized to accept grain imports in Chongqing was announced on Friday. Chongqing, in southwest China, is far removed from the major eastern seaboard grain ports but sits on the Yangtze River. The newly certified port includes berthing, unloading, inspection, and stockpiling operations with a capacity ofContinue reading “Chongqing new grain port, futures fall”