May 20, 2014
Report: China to rein in agricultural commodities
In a report published this week by French commodity research specialist Cyclope, China is the key driver for sales of raw materials, including grains, metals and meat.
The report says that world commodity prices have surged in recent years, driven by rising demand from emerging markets, particularly China.It also claims that "in the coming months, global markets will feel even the slightest sneeze from China".
In 2013, China resumed wheat imports for the first time in 10 years and became a key player in world cereal markets. It has also become the world's second-biggest buyer of beef products.
If this trend continues, "the global market for beef will turned upside down," the report says.
In recent months, policy changes in China have set their impact on global agricultural commodities like soy, wheat and corn.
For example, US corn exports to China have fallen rapidly since China toughened its stance on genetically-modified crop; while defaults by Chinese buyers have hurt soy prices.