Cash premiums for soybeans from Brazil and the US on CFR China basis had a roller coaster session in the past two weeks due to the interplay of factors including strong Chinese state-backed purchases and mounting fears of weaker Brazilian soybean output last week as well as fresh rumors of cargo washout this week. Soybean… Continue reading Soybean premiums slump on China cargo washout rumors
Category: Analysis
Yum’s strong earnings reflect fast changing diet in China
Yum China, the parent company of brands such as KFC, Pizza Hut, and Taco Bell in China, posted a revenue of $9.85 billion USD and profits of $1.39 billion USD for 2021. The company continues to expand rapidly in China with 11,788 existing stores and added 1,232 new KFC outlets and 335 new Pizza Hut… Continue reading Yum’s strong earnings reflect fast changing diet in China
Why the US-China Phase One Trade Deal was doomed to disappoint
As 2021 trade data becomes available, it is clear that trade volumes pledged under the US-China Phase One Trade Agreement were underdelivered. Estimates are that China bought only 57% of the target and China’s imports from the US did not exceed pre-trade war levels. On the contrary to former US President Donald Trump’s hope to… Continue reading Why the US-China Phase One Trade Deal was doomed to disappoint
Heilongjiang to add 1.3m tons soybean production this year: gov
China’s largest soybean and corn growing province Heilongjiang is to add 1.3 million tons of soybean output capacity in 2022 amid an ambitious acreage expansion plan, local government said recently. The provincial agriculture department said it will allocate 10 million mu (666,667 hectares) more land for soybean planting this year to boost output. China has… Continue reading Heilongjiang to add 1.3m tons soybean production this year: gov
China to restock pork reserve amid weak hog price, futures spike
China’s state planner said it is preparing to stock national pork reserve as hog price has fallen below a critical level. The Chinese government could soon replenish its pork reserves across the country hog-to-corn price ratio slumped to 5.57 to 1, said China’s National Development and Reform Commission (NDRC) on Tuesday. The ratio is currently… Continue reading China to restock pork reserve amid weak hog price, futures spike
China meal, oil futures spike after national holiday
Futures for vegetable meal and oil in China jumped sharply in the first trading day after the week-long Lunar New Year holiday as concerns of lower Brazilian soybean output and higher crude oil price spilled over. The main soymeal contract on Dalian Commodity Exchange (DCE) gapped up nearly 8% by mid-Monday to 3,636 yuan/ton (US$572/ton),… Continue reading China meal, oil futures spike after national holiday
Outlook for 2022
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
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