Category: Analysis

Futures market for soybean complex rebounded late Wednesday shrugging off the bearishness from large sell-off in the first half of this week as China announced state auctions of soybean reserves. CBOT soybean futures rebounded 1-2% yesterday after falling for two straight sessions earlier in the week. Soymeal and soyoil futures on China’s Dalian Commodity Exchange… Continue reading Soybean futures rebound on alleged China buying spree

Corn seed prices are on the rise in China according to a recent report by Securities Daily. Farmers were already facing rising input costs due to rallies in fertilizer, logistics issues due to Covid restrictions, and rises in land rents and labor costs. Corn seed prices have been rising after Chinese New Year, with some… Continue reading Higher seed prices could pressure corn farmers

Soymeal cash basis and futures in China fell sharply this week to the lowest level in three weeks as the announcement of state soybean auctions triggered a large sell-off. Based on Sitonia Consulting data, cash basis for spot soymeal delivery in northern China sank almost 28% since the start of this week to 580 yuan/ton… Continue reading China soymeal basis, futures slump to three-week low

Dalian corn futures have traded lower at the start of this week after prices reached previous highs and failed to attract enough buying interest to make new highs. Futures remain broadly in an uptrend; but the demand outlook has weakened over the past week as China’s Covid outbreak worsens. Cash prices were flat across most… Continue reading Weekly corn review: Covid disrupts logistics, demand outlook weaker

China’s state-owned stockpiler has kicked off the long-waited auctions of imported soybeans starting this Friday amid slow pace of cargo purchases from abroad due to negative crush margins. The first round of auctions in 2022 will offer 500,000 tons of national soybean reserves imported back in 2019 across eight provinces among which five are on… Continue reading China starts imported soybean reserve auction, prices fall

The key indictor for China’s hog market has continued to fall as of last week as feed companies further hiked prices due to rising raw material costs. The hog-corn ratio edged 1.31% lower last week to 4.53:1 after having already slid in the previous 13 weeks, according to data from China’s National Development and Reform… Continue reading Hog-corn ratio down 14 weeks amid further feed price hikes

The Ministry of Agriculture has sent a working group to Jilin to guide spring planting preparations amid the ongoing Covid lockdown in the province. Despite lockdowns across the province which have lasted a week, Covid case numbers remain very elevated. The province reported another 1,993 cases yesterday. Daily case numbers at this point last week… Continue reading Rising Covid cases disrupt spring planting, logistics

Rapeseed production in China is expected to reach a new high in 2022 amid the government push for self-sufficiency and food security. Total domestic output of the oilseed is estimated to hit 14.5 million tons this year, according to China’s National Grain and Oils Information Center (CNGOIC). Projections for larger rapeseed production is made based… Continue reading China rapeseed production to hit new record in 2022: CNGOIC

On March 20th, health officials in Beijing linked an outbreak of at least 11 cases to a group of customers at a roast duck restaurant which failed to properly contact-trace their customers. Customers visiting restaurants are required to scan a QR code that generates a green health code granting access for entry. However, some of… Continue reading Covid hotspots in restaurants continue to weigh on China food demand

Tangshan, the second most populous city in the province of Hebei, announced a suspension of any imported cold chain products into the city due to worries about coronavirus. Regulators have been stressing the need to increase safety and inspection checks of cold chain products amid the ongoing severe Covid outbreak, but Tangshan has gone much… Continue reading City bans imported cold chain foods due to Covid risks