Category: Analysis

Soybean meal futures on China’s Dalian Commodity Exchange continued to edge higher on Wednesday as concerns of a lower-than-expected Brazilian and Argentinian 2021/22 crops are in the limelight. The most liquid DCE soymeal contract gained another 1% on Wednesday to reach the highest level since late August 2021 at 3,298 yuan/ton (US$518/ton). DCE soymeal futures… Continue reading China soymeal futures hit 4-month high amid lower South American output

State-run auctions of imported GMO corn reserves picked up in the latter half of December 2021 with offered volume rising from 55,000 tons in mid-December to nearly 148,000 tons last Friday. Sale volume at auctions hit 88,446 tons last Friday reaching the highest level since December 17, data from stockpiler Sinograin showed. The clearance rate… Continue reading GMO corn auctions rebound in second half of December

Recent announcements from China on increasing its soybean productions in 2022 provoked new discussions on whether the country can achieve that goal given the existing tight balance of food supply and demand. “The long-term insufficient supply for use in [animal] feed and [vegetable] oil has become part of China’s biggest food security weakness”, the state-run… Continue reading China’s soybean “soft spot” may take a long time to solve

Soybean crush margins in China fell sharply in the past two weeks as fears of crop damage in Brazil amidst continuous dry weather conditions fuelled a rally of soybean complex futures. Board margins for front-month shipments of Brazilian soybeans into China sank to -$25-30/ton last week and continued to hover at the level of $-20/ton… Continue reading Dry weather in Brazil weighs on China soybean crush margins, DCE futures

Chinese regulators have approved the country’s first ever batch of genetically modified organism (GMO) corn seeds one of which was developed by Beijing Dabeinong Technology Group, according to an official announcement from the company on Tuesday (December 28). The seed, DBN3601T, was granted a GMO safety certificate by China’s Ministry of Agriculture and Rural Affairs… Continue reading China mulls approval of first batch of GMO corn seeds amid self-sufficiency push

The national average hog price was up slightly over the weekend to 16.75 yuan/kg (US$2,634 per ton). Future rallied into multiweek highs at the end of last week but were weaker this week. Tang Renshen, a large publicly listed hog breeder, says they expect the consolidation trend in the industry to continue for the next… Continue reading Market participants remain bearish about hog prices going into 2022

Shares of Chinese companies in the agriculture sector traded sharply higher on Monday with several stocks hitting a limit-up as China sets a new agenda for the sector in a critical meeting over the past weekend. The Chinese government called for “stable production and supply” and “stable agriculture and rural development” in the Central Rural… Continue reading China agriculture equities surge as government urges higher soybean output in 2022

China’s Ministry of Agriculture and Rural Affairs (MARA) laid out their goals for the 14th five-year plan on Friday, proposing that the self-sufficiency rates should be 95% for pork, 85% for beef and mutton, 70% for milk and 100% for poultry and eggs by 2025. However, feed grain imports likely to remain strong given China’s… Continue reading China feed grain imports to stay strong despite self-sufficiency push

Chinese purchases of 2021/22 Brazilian new crop soybeans jumped last week as buying interest from state-owned companies strengthened, according to several market sources. Out of 17 cargoes traded last week, eight were contracted for March 2022 shipment from Brazil for new crops that are yet to be harvested, three traders informed Sitonia Consulting. Seven more… Continue reading China’s 21/22 Brazilian new crop soybean purchases spike on state-backed interest, US buying slumps