Category: Analysis

The latest round of auctions of imported soybeans was announced for next week on September 2, with a volume of only 68k tons. This includes soybeans from 2022, 2024, and 2025. The auctions will only be in Sichuan and Guangxi. The first three auctions of imported soybeans in late July and early August were all… Continue reading Auctions of imported soybeans much smaller next week

Hog producers have reported large losses in their H1 earnings estimates as prices remained depressed. One of the smaller listed companies, Dongrui, is a good example of the challenges the industry faced. The company reported H1 sales of 886k hogs, up 16% year on year. The company reported record monthly sales of 175k hogs in… Continue reading Hog producers continue to report large H1 losses

A recent article in Farmers’ Daily provided a more detailed look at hog feed production in July. The output of industrial feed for sows in July was flat compared to June. Based on a conversion into the implied output of complete feed, sow feed production was down 5.8% year on year. For example, in June,… Continue reading Piglet feed production in July continues to fall, marking four months of decline

Wheat prices were lower last week in Hubei province. The government has started purchases of wheat at minimum prices in both neighboring Henan and Anhui provinces. However, prices were under pressure due to downstream demand being weaker than expected going into the autumn holidays and the resumption of schools. The introduction of the government’s minimum… Continue reading Wheat prices decline on weaker end-user demand despite government minimum price

I was recently quoted in the Reuters story Heat, floods threaten China crops as U.S. farm purchases loom. I’ve included some excerpts below: Darin Friedrichs, ‌co-founder of ⁠Sitonia Consulting, said Typhoon Dolphin would probably take a toll on production in Henan, but it would be less damaging than last year’s rains during harvest. Both Liu… Continue reading Sitonia Consulting in the news

Egg prices continued to rise last week on high demand ahead of Mooncake season, as well as coming start of the school year. Beef and live cattle prices also continued to rise, but at a slower pace. Milk prices were flat last over the past week.

On August 26th, Sinograin conducted its latest round of auctions of imported soybeans. The amount auctioned fell to the lowest level for this round of auctions at 223k tons. There were 171k tons, or 77%, purchased by the market. Prices continued to rise, with the average price at 4163 yuan per ton, up 32 yuan… Continue reading Auctions of imported soybeans continue to see rising prices