China Agriculture Market Sees Mixed Results Amid Weather Concerns

The China agriculture market has shown mixed results in recent times. The soybean price on the DCE A2609 settled at Yuan 4,841/tonne, up Yuan 137 from the previous week. This increase is attributed to several factors, including the strength of futures prices, pre-Liqiu restocking, rainfall risks, and high costs.

The Northeast China region saw slightly firmer prices due to these factors, while other regions held steady with early new beans arriving but off-season demand persisting.

In contrast, the edible oil market has diverged, with soybean oil being rangebound due to ample supply and off-season demand. Palm oil, however, remained strong after recovering from a neutral-to-bearish report from MPOB, underpinned by the B50 policy and El Niño concerns.

Rapeseed oil was firm on tight spot supply but showed some softening in basis. The national average hog price fell slightly to Yuan 10.3/kg, down Yuan 0.06/kg week-on-week, due to normalized supply after an early-month reduction and continued decline in sow herds.

The grain market saw the national average corn price fall Yuan 10/tonne WoW to Yuan 2,316/tonne due to persistent selling by traders amid heat damage, high inventories, and spring corn arrivals. However, cotton futures on the ZCE rose to Yuan 16,150/tonne, supported by falling commercial inventories.