November 24, 2003
Scrutinizing China's Soybean Market in October 2003
An eFeedLink Special Report
Below is an abstract of the report: Scrutinizing China's Soybean Market in October 2003
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According to a researcher from China's Rural Agricultural Economics Research Centre, the acreage for sowing soybean in China has increased. However, the country's total soybean output is likely to drop by a relatively great extent.
According to the latest findings, the total area of land covered by soybean plantations stands at 135 million mu (mu is the Chinese measurement unit for acreage; 1 mu =0.0667 hectares). This is an increase of 4.26 million mu or a 3.3% from last year. However, the main soybean producing areas are affected by prolong dry weather conditions, which has led to water deficiency. Besides, spells of cold weather and frozen soil conditions will negatively affect the level of output. It is estimated that for year 2003, the total output of soybean will stand at 15.5 million tons, which is a drop of 6% compared to year 2002.
The Experimentation Stations for High-oil and High-yield Soybean of China's Ministry of Agriculture has introduced reforms in the production methods of soybeans. These reformative measures have improved the quality of soybean seedlings; advanced the production technology of soybeans; lowered the production costs and raised level of commercialization of soybean production. The new measures have also led to the standardization of production methods and increase the size of crops, so that economies of scale can be reaped.
More contents in this 5-page report include:
Increase in Import of Soybean and Soyoil Whilst Export of Soymeal Decrease
Demand for Soybean Increase In 2002/03; Oversupply of Soyoil and Soymeal
I. Supply and Consumption of Soybean Increase Significantly
II. Sufficient Market Supply of Soyoil
III. Supply of Soymeal Increases Substantially
For 2003/04, Increase in the Production of Soybean Will be Slower than the Increase in Demand
Prices of Soybean and Related Products Continue to Surge in the China and International Markets
I. Since October, Prices of Soybean & Soyoil Maintain Rising Momentum
II. Prices of Soybean and Related Products Rise Sharply in China
Policy Recommendation
