Tianjin is launching a citywide testing campaign after detecting community-wide transmissions of the covid omicron variant and these cases have already spread to Henan province. China is now entering a new stage of the pandemic, and the omicron variant poses a serious threat to China’s ability to maintain its zero-covid policy. This could lead to… Continue reading How omicron could dramatically change commodity demand in China
Category: Analysis
2022/23 new crop US soybeans demand spike as Brazil crop damage fear mounts
The trading of unplanted 2022/23 new crop US soybeans spiked this week as international trading houses and Chinese importers demand jumped amid rising concerns of lower-than-expected 2021/22 Brazilian soybean output due to draught weather. About ten cargoes of new crop US soybeans were said to have changed hands on both FOB and CFR China basis… Continue reading 2022/23 new crop US soybeans demand spike as Brazil crop damage fear mounts
Cargo market update: buying pace down sharply due to negative margins, holiday season
China’s purchases of soybean cargoes slowed drastically in the past two weeks as negative crush margins and holiday season deterred buying interests. About five cargoes of Brazilian 2021/22 new crop were sold to China last week for shipments between February and April 2022, according to trade sources, halved from the week before and only accounted… Continue reading Cargo market update: buying pace down sharply due to negative margins, holiday season
Food inflation hits popular noodle brand, first price increase in a decade
The latest company to raise prices is Japanese instant noodle maker Nissin Foods, producer of the famous “Cup Noodle” brand. The prices of the company’s products sold in China are set to increase on March 1, 2022, marking the first time in 11 years that the company has raised prices. They cite “cost pressure caused… Continue reading Food inflation hits popular noodle brand, first price increase in a decade
China soymeal futures hit 4-month high amid lower South American output
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
GMO corn auctions rebound in second half of December
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
China’s soybean “soft spot” may take a long time to solve
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
Dry weather in Brazil weighs on China soybean crush margins, DCE futures
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
China mulls approval of first batch of GMO corn seeds amid self-sufficiency push
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
Market participants remain bearish about hog prices going into 2022
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