Craving "fresh produce" isn't easy? Fresh food e-commerce is under obvious pressure

Craving "fresh produce" isn't easy? Fresh food e-commerce is under obvious pressure

Under pressure from US pork imports, Taiwan, China's pig farming industry needs structural adjustment

Does Zero Euthanasia Actually Encourage Abandonment? Shelter Vets Under Explosive Pressure

China's 11th consecutive year of grain increase combined with a bumper harvest in the US puts global grain prices under pressure

The harvest season is about to arrive, and China is expected to see an 11th consecutive year of bumper grain harvests. But according to an analysis by The Wall Street Journal, years of official purchasing policy have severely distorted grain prices, with corn prices even reaching 3 times the international price, and a bumper harvest actually creates more problems.

Bumper Grape Harvest Meets Weak Demand, Sales Under Pressure in Many Parts of the Country

Autumn has arrived, and all across the country it is the good season when grape varieties come onto the market one after another to treat people's taste buds. At this time of year in the past two years, grape growers would smile from ear to ear because of both a bumper harvest and good sales. This year, however, the nationwide grape market has

Temporary reserve auction launched, corn prices under pressure and trending downward

On Thursday, the fifth round of temporary reserve corn auctions in Northeast China began. This auction is planned to be held over two days, with a total of 3.028 million tons of temporary reserve corn to be offered. Since April 9, news of batch releases of Northeast temporary reserve corn onto the market has continued to pressure the nearby corn 1509 contract, and starch has also followed the decline due to falling corn raw material prices. Considering that the starch futures market price shows a discount pattern, the downside room for starch futures prices is limited.

Temporary storage early indica rice auctions restart, rice market to remain under pressure later

It is understood that on October 13, 2015, China once again launched auctions of early indica rice from temporary storage, at a time when the government price-support purchase of the new-season early indica rice had just ended and new-season mid-to-late indica rice was coming onto the market. China's most recent auctions of temporary-storage early indica rice began on October 21, 2014

Fertilizer Industry Under Growing Pressure After Agricultural Subsidy Adjustment

Recently, the Ministry of Finance and the Ministry of Agriculture jointly issued the "Guiding Opinions on Adjusting and Improving the Three Agricultural Subsidy Policies", adjusting and improving from 2015 the three subsidy policies: subsidies for improved crop varieties, direct subsidies to grain farmers, and comprehensive subsidies for agricultural inputs. What does this have to do with the fertilizer industry?

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> &nbsp;</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 &ldquo;badly hurt&rdquo; 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. &ldquo;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.&rdquo; 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 &ldquo;concentrated arrival at ports&rdquo; 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 &ldquo;concentrated arrival at ports&rdquo;; 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, &ldquo;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.&rdquo;</p> <p> &nbsp;</p>

The soybean market has been under heavy pressure recently, with prices clearly under strain

In December, the global soybean trade side and supply side became hot topics of market attention. On the one hand, the reduction of Argentina's soybean export tariff helps boost its export competitiveness; the export competitiveness of US soybeans is further weakened; China's soybean imports will also reach their annual peak. On the other