After New Early Rice Hits the Market, Purchasing Turns Cautious: Industry Views and Analysis

New Early Rice Hits the Market, Purchasing Shows Caution At present, the new-season early indica rice in the south has fully hit the market, and the purchase price of 2015-produced national standard third-grade early indica rice is currently below the 2015 domestic minimum protective price for early indica rice. Purchasing entities are mainly grain depots, while small and medium-sized processing enterprises, due to the rather serious "strong rice, weak milled rice" phenomenon, are relatively cautious about entering the market to purchase, generally focusing on purchasing high-quality early indica rice, mainly to meet their own processing volume before the new-season middle indica rice hits the market. As new-season early indica rice hits the market and new-season middle indica rice is about to hit the market, the already loose supply of raw grain in the market becomes even looser, and with various entities busy purchasing new grain, the auction market transactions appear somewhat sluggish.

Soybean Meal Demand Growth Will Be Restrained in the Future Analyzed from the perspective of factors driving protein demand growth in China, before 2000, demand for meat, eggs, milk and other livestock products maintained double-digit rapid growth, while driving the continuous expansion of livestock and poultry farming scale, and protein feed demand grew rapidly accordingly; thereafter, the growth rate of demand for meat, eggs, milk and other livestock products began to slow, and protein feed demand generally slowed, but differences among varieties began to emerge. Soybean meal, as the most important protein raw material, saw its formulation usage continuously increase, and demand growth remained strong. Under the premise that total protein demand growth is slowing and the space for formula substitution is declining, soybean meal demand growth will also be restrained in the future.