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August 24, 2015 National Agricultural Products Wholesale Price Index Week-on-Week
According to monitoring by the Ministry of Agriculture, on August 24 the National Agricultural Products Wholesale Price Index was 213.93, down 0.92 points from last Friday, of which the Vegetable Basket Products Wholesale Price Index was 216.93, down 1.43 points from last Friday. As of 14:00 today, the National Agricultural Products Wholesale Market
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High-standard farmland construction pilot projects can enjoy discount interest subsidy policy starting from August
On the 21st, a reporter learned from the China Development Bank that the Ministry of Finance and CDB recently jointly issued the "Notice on Innovating Investment and Financing Models to Accelerate the Pilot of High-standard Farmland Construction." The notice states that starting from August, the two parties will adopt two methods, discount interest and subsidies, to support state-owned farms
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How can major grain-producing counties become strong counties?
On August 22, the China High-end Forum on Food Security and Urban-Rural Coordinated Development in Major Grain-Producing Counties, hosted by the China Well-off Society Construction Research Association, was held in Beijing. More than 60 experts and scholars from more than 10 government departments and research institutions, including the Ministry of Housing and Urban-Rural Development and the Chinese Academy of Sciences and the Chinese Academy of Agricultural Sciences, attended the forum.
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On August 21, 2015, the "National Agricultural Products Wholesale Price Index" compared with yesterday
According to monitoring by the Ministry of Agriculture, on August 21 the National Agricultural Products Wholesale Price Index was 214.85, up 0.49 points from yesterday, among which the "Vegetable Basket" Products Wholesale Price Index was 218.36, up 0.64 points from yesterday. As of 14:00 today, the average price of pork at national agricultural products wholesale markets
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Rise and Fall of the National Agricultural Products Wholesale Price Index on August 20, 2015
According to monitoring by the Ministry of Agriculture, on August 20 the National Agricultural Products Wholesale Price Index was 214.36, up 0.23 points from yesterday, among which the "Basket of Vegetables" Products Wholesale Price Index was 217.72, up 0.36 points from yesterday. As of 14:00 today, at the national agricultural products wholesale market, the average price of pork
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On August 19, 2015, the "National Agricultural Products Wholesale Price Index" compared with yesterday
According to monitoring by the Ministry of Agriculture, on August 19 the National Agricultural Products Wholesale Price Index was 214.13, up 0.58 points from yesterday; among this, the "Vegetable Basket" Products Wholesale Price Index was 217.36, up 0.58 points from yesterday. As of 14:00 today, in the national agricultural products wholesale market, pig
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Wang Yang stresses that the dairy product structure needs deep adjustment
On August 18, the 2015 China Dairy D20 Summit, themed "Quality and Safe Development, Revitalizing China's Dairy Industry," was held in Beijing. Wang Yang, member of the Political Bureau of the Central Committee and Vice Premier of the State Council, attended the summit and delivered a speech, pointing out that further opening up China's dairy industry is an irresistible trend
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On August 17, 2015, the "National Wholesale Price Index for Agricultural Products" compared with last week
According to monitoring by the Ministry of Agriculture, on August 17 the National Wholesale Price Index for Agricultural Products was 213.80, up 0.54 points from last Friday, among which the Wholesale Price Index for Basket Products was 216.93, up 0.63 points from last Friday. As of 14:00 today, the national agricultural products wholesale market
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Soybean Imports Under Pressure: Cost Rises by 3 Million Yuan per Vessel
On August 11, news that Russia would lower tariffs on related agricultural products roiled the commodities market. Coincidentally, the People's Bank of China's sharp downward revision of the RMB central parity rate during the same period also gave some agricultural products a different performance. Zhuochuang Information told a Securities Daily reporter that, affected by the RMB depreciation, Chicago soybean futures surged 3.5% on Monday before plunging 2.6% on Tuesday. Apart from the impact on the futures market, soybean imports are also expected to be "badly hurt" later on. As the world's largest buyer of soybeans, China has had an import dependence rate for soybeans above 50% over the past 15 years; especially in the past six years, China's foreign dependence on soybeans has exceeded 80%, and in 2014 the foreign dependence rate was around 86%. Without considering foreign exchange arbitrage, if domestic soybean traders import soybeans at the latest exchange rate, the cost per vessel increases by about 3 million yuan. Although importing enterprises can use foreign exchange arbitrage tools to reduce exchange losses, if the RMB continues to depreciate, enterprises' import costs will face the risk of a sharp rise. <p> </p> <p> On August 11, news that Russia would lower tariffs on related agricultural products roiled the commodities market.</p> <p> Coincidentally, the People's Bank of China's sharp downward revision of the RMB central parity rate during the same period also gave some agricultural products a different performance. Zhuochuang Information told a Securities Daily reporter that, affected by the RMB depreciation, Chicago soybean futures surged 3.5% on Monday before plunging 2.6% on Tuesday. Apart from the impact on the futures market, soybean imports are also expected to be “badly hurt” later on. As the world's largest buyer of soybeans, China has had an import dependence rate for soybeans above 50% over the past 15 years; especially in the past six years, China's foreign dependence on soybeans has exceeded 80%, and in 2014 the foreign dependence rate was around 86%. Without considering foreign exchange arbitrage, if domestic soybean traders import soybeans at the latest exchange rate, the cost per vessel increases by about 3 million yuan. Although importing enterprises can use foreign exchange arbitrage tools to reduce exchange losses, if the RMB continues to depreciate, enterprises' import costs will face the risk of a sharp rise.</p> <p> Soybean imports remain at a high level</p> <p> A Securities Daily reporter learned from Zhuochuang Information that Russia has stated that, in order to honor its commitments to the World Trade Organization (WTO), it will continue to gradually lower export tariffs on major oilseeds, starting from September 1, 2015. The soybean export tariff will drop to zero, and the rapeseed export tariff will drop to 6.5%, but no lower than 11.4 euros per ton. The sunflower seed export tariff will drop to 9.88%, but no lower than 14.81 euros per ton.</p> <p> In this regard, Zhuochuang Information believes this may change the pattern of China's sources for imported soybeans.</p> <p> A Securities Daily reporter checked data from the General Administration of Customs. Looking at import volume data, soybean imports showed a surge in July. The data shows that 9.5 million tons of soybeans were imported in July, while from January to July cumulative imports reached 44.66 million tons, with import volume up 7.1% year on year and value down 19.7% year on year.</p> <p> Checking data from other months so far this year shows that although soybean import data fluctuated repeatedly in the first half of this year, with differing degrees of year-on-year increases and decreases, the July import volume increased noticeably when the data are ranked.</p> <p> Separately, media reports said the surge in soybean imports was mainly because South American soybeans were cheap, stimulating increased purchasing demand from Chinese buyers. The China National Grain and Oils Information Center forecasts that soybean imports in August and September will total 13 million tons, higher than 11.06 million tons in the same period last year.</p> <p> Corresponding to the surge in imports is the continuous shrinking of the domestic soybean market. The China National Grain and Oils Information Center expects China's soybean output next year to fall to 11 million tons, below this year's 12.15 million tons.</p> <p> While news of Russia's tariff cut is still echoing, the RMB depreciation has added another layer of meaning to soybean import and export business. “The RMB has depreciated continuously for two days by a relatively large margin, which is a major positive for foreign trade enterprises. In recent years, the RMB has kept appreciating, while international market demand has been sluggish, dealing a relatively large blow to China's exports. In July this year, exports fell 8.3% year on year. After the RMB depreciation, the price advantage of China's exported goods will be somewhat strengthened, which is conducive to improving the performance of foreign trade enterprises. In fact, the main purpose of this central bank-led RMB depreciation is to promote exports.” Guo Fanli, research director at China Venture Consulting, explained to Securities Daily. Specifically for agricultural enterprises, Guo Fanli believes enterprises should actively raise the added value of their products and develop mid- to high-end business. This RMB depreciation is a good opportunity for China's agricultural processing import and export enterprises to rebuild their brand image. Agricultural processing import and export enterprises can export some mid- to high-end products, and because of the RMB depreciation, these mid- to high-end products are expected to be welcomed by the market for their relatively high cost-performance ratio. Once foreign markets have relatively high recognition of China's exported mid- to high-end products, even if the RMB appreciates in the future, it will not have a relatively large impact on agricultural processing import and export business.</p> <p> Some agricultural analysts also explained in interviews with Securities Daily that the current agricultural production model determines that domestic soybeans regaining market share will not happen overnight.</p> <p> The phenomenon of “concentrated arrival at ports” will continue</p> <p> Changes in the soybean market structure have also given the current market clear characteristics. A research report from Guotai Junan shows that China's soybean imports continue to show the phenomenon of “concentrated arrival at ports”; therefore, China's soybean imports are expected to fall month on month in August, but in absolute terms they are still expected to remain in a high range.</p> <p> Because China's soybean imports surged in July, setting the highest monthly import volume ever recorded. Guotai Junan believes that in the first seven months of 2015, there were some keywords to follow in global soybean trade: China's soybean imports will fall month on month in August, with import volume estimated at around 8 million to 8.5 million tons; China's soybean import volume once again set a record high for the same period in history, and China's soybean imports are expected to gradually decline in August.</p> <p> Now, with changes in Russia's soybean export tariff policy, the market structure may also change. Zhuochuang Information believes that China's main soybean importing countries are currently the United States, Brazil and Argentina. Looking at import data from the first half of the year, the three countries accounted for 97% of import volume, while Russia accounted for only 0.72%. However, affected by Russia's soybean exports soon facing zero tariffs, “plus the fact that in recent years farmers in Northeast China have tended to go to Russia to grow soybeans, it is expected that China's soybean imports from Russia will increase somewhat later on.”</p> <p> </p>
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On August 12, 2015, the "National Agricultural Products Wholesale Price Index" compared with yesterday
According to monitoring by the Ministry of Agriculture, on August 12 the National Agricultural Products Wholesale Price Index was 213.22, up 1.42 points from yesterday, of which the "Vegetable Basket" Products Wholesale Price Index was 216.42, up 1.82 points from yesterday. As of 14:00 today, the average price of pork at the national agricultural products wholesale market
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