Category: Analysis

The Ministry of Commerce published its interpretation of the recent discussions between the US and China. It said that both sides had reached a consensus about the Trade Council. It will first discuss reciprocal tariff reductions of $30 billion for each side. Both sides agreed to reduce tariffs on approximately $30 billion, with tariffs on… Continue reading US-China trade council plans tariff reduction; Ag Work Group meeting before year-end

On Monday, Sinograin’s latest round of soybean auctions saw 514k tons listed. Purchases were 191.7k tons, or 37%, were purchased by the market. The average price was 4340 yuan per ton, down from 4400 yuan per ton last week.

Last week, temperatures in China were mixed. Areas ranging from Sichuan, the Yangtze River Delta and eastern China saw rainfall, with some areas seeing up to 100-250mm over the past 10 days. This has pushed areas of Henan back into excessive soil moisture levels. The National Meteorological Center noted that the combination of lower levels… Continue reading Rains in central China disrupt early harvest progress

US soybeans will continue to face a 10% tariff into China, while tariffs on other agricultural products will be cut. In terms of agricultural products, China said cuts to tariffs will include items such as corn, wheat, seafood, and meat. In China, the market response was minimal so far. For soybeans, there isn’t a strong… Continue reading China leaves tariffs on US soybeans, but cuts other tariffs

In digging through soybean and corn planting subsidies, I also came across information for equipment subsidies. In order to modernize its agricultural sector, China provides equipment subsidies for farmers to upgrade tractors, combines, and other equipment. This week, Teili County in Heilongjiang announced they would be suspending their processing of these subsidies. It said that… Continue reading Equipment subsidies and modernizing Chinese agriculture

As of September 20, Henan province reports wheat purchases by companies at 18.49 million tons, and purchases under the government’s minimum price purchases at 1.3 million tons. The purchases at minimum prices are down sharply compared to last year, which ended September at 8.5 million tons. With this year’s minimum-price purchases ending next week, the… Continue reading Wheat purchases at minimum prices down sharply year on year

Uruguay’s Undersecretary of the Ministry of Livestock, Agriculture and Fisheries said the country had been contacted by Australia and Brazil about transferring its unused import quotas for Chinese beef imports. Uruguay has a quota of 324k tons, and through August had only filled 31% of it. Brazil and Australia have already exhausted their quotas. The… Continue reading Uruguay, Brazil, Australia discuss trading beef quotas

The Zhengzhou Commodity Exchange announced it was seeking comments on a draft proposal for futures and options on sunflower oil. Sunflower oil imports have been falling in recent years. Imports peaked at 1.95 million tons in 2020 but fell to 523k tons in 2025. The ZCE has a relatively wide mix of agricultural futures. It… Continue reading Zhengzhou exchange proposes sunflower oil futures and options