An important divergence has appeared in the Chinese economy which affects agriculture and food demand. The industrial side of the economy is speeding ahead. Metrics such as exports, electricity demand, PPI, container rates, and industrial output are all showing strong growth. China’s factories are operating at high capacity and shipping goods around the world. On… Continue reading Outlook for 2022
Category: Analysis
CBOT short covering, China cargo purchases boost DCE futures
Soymeal and soyoil futures in China jumped more than 2% on Thursday thanks to strong short covering activities in CBOT soybean futures along with continuous Chinese state-backed purchases of US soybeans. The most liquid soymeal contract on Dalian Commodity Exchange (DCE) bounced nearly 3% higher intraday to the highest level since October last year at… Continue reading CBOT short covering, China cargo purchases boost DCE futures
China soymeal stocks sink to 2-yr low amid low soybean imports
Soybean meal stocks level in China plunged since the start of 2022 as feed companies ramp up purchases to replenish their stocks in fear of slow soybean imports amid supply disruption from Covid outbreaks globally. Commercial stocks of the key animal feed ingredient slumped to less than 300,000 tons as of the beginning of this… Continue reading China soymeal stocks sink to 2-yr low amid low soybean imports
Crushers in northern China to limit vehicle amid emission curb
Oilseed crushers in major hubs in northern China is to start limiting vehicle access as the country aims to cut emission in preparation for the Winter Olympics which is due to commence in less than two weeks. China’s Ministry of Ecology and Environment has given notice to crushers in cities with large oilseed crushing activities… Continue reading Crushers in northern China to limit vehicle amid emission curb
USDA, traders confirm large China buying from US
The USDA announced on Friday that 132,000 tons of soybeans in the current marketing year were sold to China and traders from various trading houses also received strong buying interest from state-owned buyers late last week. Despite the market is still uncertain of the exact total amount China’s state buyers will be purchasing, these sources… Continue reading USDA, traders confirm large China buying from US
Government calls for more fertilizer use as wheat crop concern looms
Chinese farmers need to step up efforts to ensure wheat output as a large portion of winter wheat planting has been delayed in China this year and the growth of seedlings is currently weak, the Ministry of Agriculture and Rural Affairs (MARA) warned in a recent press conference. There is still a possibility of a… Continue reading Government calls for more fertilizer use as wheat crop concern looms
Pre-made food demand in China booms, husbandry stocks sink
Sales from companies in China’s pre-made food industry jumped four folds year on year as more consumers choose to stay indoors. Food delivery service Dingdong Maicai reported sales volume of popular Lunar New Year dishes soared 500-980% in the past week as the holiday is just around the corner. Changes in food-eating habit are particularly… Continue reading Pre-made food demand in China booms, husbandry stocks sink
Market Flash: China rumors to buy 3m tons of US soybeans, corn for Phase One deal
Chinese state-owned companies are said to have begun contracting three million tons of US soybeans and corn in a goodwill move to smoothen talks with the US on the Phase One Trade Agreement that has ended on December 31 last year. At least five market sources confirmed on Thursday that there have been rumors of… Continue reading Market Flash: China rumors to buy 3m tons of US soybeans, corn for Phase One deal
China imports of US soybeans hit four-year high in 2021: data
Chinese soybean imports from the US surged 25% last year to the highest level since 2017 despite a bumper Brazilian supply as China aimed to fulfil the purchase target under the US-China Phase One Trade Agreement. Chinese imports of US soybeans reached more than 32 million tons in 2021 calendar year, up nearly 25% from… Continue reading China imports of US soybeans hit four-year high in 2021: data
China soybean cargo purchase slumps as crush margins worsen
Chinese buying of soybean cargoes from Brazil and the US plunged last week as crush margins for shipments in the second quarter of 2022 worsened sharply. Fewer than five soybean cargoes were sold to China last week, more than 50% lower than the volume in the week before, according to sources. Gross margins for shipments… Continue reading China soybean cargo purchase slumps as crush margins worsen