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The second round of the Sino-US strategic economic dialogue benefits Chinese textile industry

It is mentioned in the second round of the Sino-US strategic economic dialogue that The United States shall seriously consider and provide fair and reasonable treatment to Chinese enterprises with respect to their requests for treatment as "market oriented industries" in trade remedy investigations,

and will consult through the U.S.-China Joint Commission on Commerce and Trade in a cooperative manner to work towards China's Market Economy Status in an expeditious manner; enhancing cooperation and communication on cotton issues. That will make sure sufficient supply of materials to Chinese textile industry and help obtain larger market...


The increase of agricultural products import is an imperative trend in China

Chinese agricultural trade has achieved surplus since 1998, but in recent years, except vegetables many varieties need to be imported, which import volumes are low except soybean. With the consumption upgrading in China, particularly living standards improving in rural area, food and feed consumption will substantially increase, import volume going up is inevitable.

Maize supply in China will not show a great shortage in recent, so the import is not expected to rise a lot; most imported fruits and vegetables are still high-end products and the varieties not planted in China; imported livestock products are mainly high-end products, it has no effect on the overall market. In fact, sugar, cotton and soybean are the main varieties that China has to import a large amount in long-term future, because domestic supply would not be sufficient. In the second half of this year, sugar and cotton are the main varieties that China needs to import. Also, given that some high-end flour products need to add imported flour composition, China may has a certain demand for foreign wheat.

Sugar
According to customs statistics, China imported 74,257 tons of sugar in March 2010, 11.1 times more than February. In the first quarter of 2010, China imported a total of 88,959 tons of sugar, substantially decreased by 71.66% compared with the same period in 2009. The import volume in April is 16,736 tons greatly reduced by 77% compared with March. However, sugar production is still estimated to reduce in this producing season, to 10.7 million tons, the supply of sugar would decline. Therefore, the supply of sugar may not meet the demand, 1.12 million tons of the state reserves have launched to market, 700,000 tons more is expected to add. Due to the international price fall of sugar, while the domestic price remains at a high level, sugar imports will increase gradually.

Cotton
In January to April 2010, China imported a total of 1.18 million tons of cotton, increased by 184% compared to the same period of last year. The import volume reached 324,000 tons in April, similar with March and went up by 122.60% compared to the same period of last year; In the year of 2009/2010, the shortage of domestic cotton supply is estimated about 3.4 million tons, thus the importing is rapidly growing in recent. It is forecasted that China would import 2.5 million tons cotton in the year of 2009/2010.

Soybean
In 1997 to 2009, the soybean import volume in China increased 39.61 million tons, with an average annual growth rate of 25%. Now, Chinese import accounts for 53.3% of the total soybean trade volume in the world. Chinese soybean import also rises in this year. According to China Grain and Oil Information Center, the import volumes of soybean are estimated to exceed 5 million tons in May, June and July, breaking record of 4.78 million tons. The import volume is estimated to reach 5.2 million tons in May, 5.8-6 million tons in June making a record, and 5 million tons in July...



The Ministry of Agriculture researched the total grain acreage of 2010
According to the Ministry of Agriculture, China¡¯s spring-planted grain acreage is estimated to be 60 million ha. this year, an increase of 533,000 ha. over last year. Early indica planting has been finished. Semilate paddy seedling nursing has been done in 14.067 million ha., 82.3% of the plan, 3.1% more than the same period of? last year. The nation¡¯s total...

The third round of reserve-oriented pork procurement and the reserve will kick off
The Ministry of Commerce has recently kicked off this year¡¯s third round of reserve-oriented pork procurement and the reserve will be stored in Shandong, Anhui, Henan, Hebei, Sichuan, Fujian, Jilin, etc...

Corn supply abundant

Due to slow recovery of economy, livestock demand is estimated to be soft this year. Livestock inventory is presumed to shrink on account of low returns. Feed consumption is predicted to decline this year, but corn production may exceed last year.With regard to the current corn price climb, the State Grain Bureau responded on May 17 that corn...


Soybean planting delayed in Heilongjiang
Soybean planting usually starts in Heilongjiang in mid April and comes to a conclusion in mid May. Due to excessive precipitation in last winter and this spring, temperature was 2 ~ 3 ¡æ lower in the province in April than usual, delaying soybean planting by 10 ~ 15 days. By May 13, the province planted soybeans in only 1.84 million...

Soybean stocks in China reach a new high level
24 May, 2010, Soybean stocks in China¡¯s major ports are about 5.56 million tons, 50,000 MT more than that of last week. Soybean stock continued to refresh historical levels...

Cotton-processing companies go through notarized quality verification

1,457 cotton-processing companies had 11,241,035 packs of cotton, weighing 2,537,552 MT, go through notarized quality verification in 2009/2010 by May 23...


Cotton imports in high gear

China¡¯s cotton imports registered 324,000 MT in April and 1.179 million MT in the first four months of this year, 122.6% and 184% more than the same period of last year respectively. Cotton imports totaled 1.784 million MT in 2009/2008 (beginning in Aug.) by April, an increase of 71.66% on the year-on-year basis. BOABC predicts that total cotton...


Fertilizer production increased in April
China¡¯s fertilizer production recorded 5.933 million MT (nutrient, same below) in April, down 2.7% from the month before but up 1.6% on the year-on-year basis. Specifically, the productions of nitrogen, phosphorus and potassium recorded 4.173 million MT, 1.382 million MT and 378,000 MT respectively, down 2%, up 10.1% and up 14.9% respectively...

NPK output in the first quarter

According to the Chinese Phosphate Fertilizer Industry Association, China¡¯s NPK production was 7.16 million MT in the first quarter of this year, only 0.63% more than the same period of last year. The top ten phosphorus producers¡¯ production accounted for 43.6% of the nation¡¯s total, a drop of 3% on the year-on-year basis...

key words : coarse grains , price soaring , agricultural products import , cotton

The prices of Chinese agricultural products are rising overall in recent years. According to BOABC statistics, in the first 4 months of this year, rice and wheat prices went up about 10%

compared to the same period of last year, corn price raised 15%-20%, vegetables prices increased 30% approximately due to last cold spring and drought in southwest area. Prices of coarse grains have rose dramatically, up about 50% overall.Generally, coarse grains include beans (except soybeans), millet and potato varieties. The production of coarse grains is relatively concentrated, mainly distributes in northeast, Huanghuaihai plain and southwest. Except millet, 40% of coarse grains in China are produced in southwest area. Because of concentrated....


As a major component of agricultural planting cost, seed is in the upstream of agricultural products. The competitive advantages in seed market will determine the initiative of agricultural competition. China is a big agricultural country, with a perennial agricultural seed usage of 125 billion kg. In 2009, the seed market compacity of hybrid corn, hybrid rice, wheat, cotton, vegetables is RMB390 billion. Huge market made China¡¯s seed industry become the focus of industry capital.China's seed market competition is relatively dispersed, enterprises have large amount of data but are smal-sized and industry concentration is low. Huge profits, enormous market and technological and policy barriers make seed industry a sub-industry in agricultural industries. With China¡¯s seed market being standardized in recent years, mergers and acquisitions frequently occur. How is the current status of China¡¯s seed market? How is the competition conditions in the segmented markets of all varieties? How will seed industry and policies develop in 2010? It is where to go in the future...



In the last one or two months, milk powder prices in the Chinese market have shown an obvious upward trend. Prices of final products and the raw milk powder used as manufacturing material are both rising. Chen Lianfang from BOABC looks at the reasons why.

There are three reasons for the price increase of raw milk powder. Firstly, the cost increase. Due to small profit margins, rising cost inevitably causes gross margin decline, which is the direct cause for the price rise.

Secondly, changes in demand. The outbreak of international financial crisis in 2008 led to reduced demand for milk in 2009. The International milk powder prices had been at a low level until last August. This is mainly reflected in New Zealand milk powder price decline. Affected by this, China raw milk powder prices were also low, yet with the impacts of economic downturn reducing, the price of raw milk powder began to rise from August 2009.

Thirdly, the link between the Chinese market and international markets increased. Since China joined WTO, China has become New Zealand¡¯s largest milk powder export market. Effects of the international market on the Chinese domestic market became increasingly evident. The rising price in international markets will inevitably cause price rises in the domestic market...



1.Special Report on China's Corn Seed Market in 2010

2.Special Report on China's Seed Market in 2010

3.Research Report on Application of D70 & D90 in the Market of Formula Milk Powder for Infants in China

4.Research Report of China's Potash Industry, 2010-2020

5.Special Research Report on China's Coffee Beverage Market, 2010

6.Special Research Report on China's Tomato Paste Market


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