China to Expand Soybean PlantingThursday, June 27, 2019
China’s major soybean growing areas are expected to expand their plantings by 10% this year from last year’s 3.6M hectares to rapidly increase domestic supply while cutting the country’s dependence on imports, the Xinhuanet reported recently. Soybeans were being planted in the northern Heilongjiang and Jilin provinces, Inner Mongolia regions, and the central province of Henan.
The China Agricultural Sector 2019 Development Report released last month indicated the country’s soybean imports had declined for the first time in seven years. Last year’s import was 88.03M tons, down 7.9% from prior year. Soybean futures at the Chicago Board of Trade closed at their lowest level in more than 10 years on 13 May, as traders showed increasing concerns about the escalating trade tension between the USA and China, sources said.
The trade tension coupled with news of natural disasters that led to a drop in domestic grain production led Beijing to issue an emergency control plan last month to regulate the supply and prices of grains and cooking oil, according to Epoch Times. The city’s Commission of Development and Reform claimed the plan would ensure Beijing’s grain and oil supply and prices were within the normal range.