According to the official website of
China’s Ministry of Agriculture and Rural Affairs, officials recently held a meeting on
deploying and carrying out large-scale yield improvement actions for major
agricultural products such as grain and vegetable oil across the country.
In the meeting, officials emphasized the
importance of carrying out large-scale yield improvement measures for major
crops. In China, improved agricultural production is one of the major goals of
technological innovation, and field production technology will still undergo
further rounds of improvement. Major crops such as corn and beans will be the key
crops for this year's yield-enhancing measures.
Chinese corn prices decrease in May
The average corn price sold by Shandong
producers is around RMB 2.8 per kilogram.
Faced with the drop in corn prices, traders
in North China and Northeast China, especially those with grain in hand, showed
two different attitudes and views. On one hand, corn traders in Northern China
believe that there is no chance for a corn recovery in the near future,
believing that farmers should focus on producing and selling grain. As wheat
will be active on the market soon, and as warehouses will be vacated to make
room for wheat, many traders do not have hope for corn.
On the other hand, corn traders in the
Northeast believe that the negative factors are minimal and that the price of
corn cannot continue to fall. At the same time, the price of rotation grain
wheat from reserves is relatively low in Anhui, and the transaction price in
other regions is still relatively high.
Prices of beans vary across China
The prices of beans in the market in
Northeast China have increased, and several large grain depots have shown
willingness to purchase soybeans and increase their inventories. At the same
time, the demand for grain and vegetable oil has increased, and the prices for
these products are currently stabilizing.
The price of beans is steady in Southern
China. The pace of shipments is normal, the market in southern production areas
is generally stable, the inventory in production areas is starting to deplete,
and downstream demand is limited.
As for the import market, international
soybean futures fell during the first week of May. The increase in soybean
yield due to faster soybean planting in the United States has reduced average
soybean-to-port costs. The estimated average price of imported soybeans during
the first week of May was RMB 4840 per ton.
With the reduction of acquisition entities,
the soybean market has begun to stabilize due to consistent downstream demand.
The prices of imported soybeans are rising, but the prices of Chinese soybeans
are not expected to increase. A strict quarantine of imported soybeans began in
March, which delayed the entry of imported soybeans into the Chinese market
and, to a certain extent, supported the prices of soybeans in China. Compared
to the previous year, the price of Chinese soybeans has increased, while the
price of imported soybeans has declined.
For more information, please check our Crop Farming China E-News