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China market update
Story Date: 1/18/2021
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Source: Danny Ding, NCDA&CS, 1/15/21
Although the price of U.S. soybeans has risen to a record high since 2014, China is still increasing its imports of U.S. soybeans recently. Moreover, China's corn import is expected to be 10 million metric tons in January, higher than the previous forecast of 7 million metric tons.
Due to the USDA's reduction of U.S. corn production by 8.2 million metric tons in 2020, customers are concern about the global corn supply shortage, leading to the March corn futures hitting a 5% increase. How this will affect China's import of U.S. corn remains to be seen.
The number of newly confirmed local COVID-19 cases kept increasing this week in China and over 70% of those 300+ new cases were from Hebei province bordering Beijing. And the rest ones were mainly from Heilongjiang province. The local authorities are tracing on the Hebei travelers who visited other provinces lately and there is a potential risk of broader outbreak. The second wave is not really impacting on normal life yet but government authorities are strongly encouraging people to cancel unnecessary travels and schools started winter holiday 1-2 weeks earlier.
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