China’s Ministry of Agriculture and Rural Affairs designates corn as a key crop for this year's economic plan 05-30-2023

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

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