On July 8th, a report of America’s Bloomberg said China has increased
the import og American wheat and American wheat future price rises, so
do the prices of soybean and corn futures.
United States Department of Agriculture said America has exported a
total amount of 840,000 tons of soft red winter wheat to China by the
end of May and up to July 3rd, the shipped amount has reached 360,000
tons; the total sales amount and shipped amount between June 1st and
27th has reached 1,830,000 tons which is 5 times of previous years. Greg
Grow, director of Agriculture Department of American Archer Financial
Service Inc said in a telephone interview that American wheat is more
competitive in China as its price is almost the lowest in this quarter.
On the morning of 8th, the wheat delivery price of September at Chicago
Stock Exchange rose by 0.6% to USD 6.6425/bushel. Before that, wheat
future price once fell to USD 6.5225 on July 2nd, which is the lowest
since 2012 June.
Shanghai JC Intelligence Co. Ltd said that within the import quota for
Chinese agricultural products, American wheat price is 2100 yuan/ton
while the domestic wheat price is 2400 yuan/ton. Besides, the quality of
local agricultural products cannot be ensured and therefore it is hard
for them to compete with imported products.
In the view of Greg Grow, in the past three days there was heavy rain
from Arkansas to Ohio. People are worried that the crops may have been
harmed and farmers may reduce the plantation area of soybean and this
may lead to the price increase of wheat and soybean. Now it’s too late
for crop rotation and the delay of wheat harvest has affected the
plantation of soybean. The delivery price of soybean future for November
rises by 0.7%, to 12.3725 USD/bushel; and the corn’s future price for
December also rises by 1.4%, to 4.9825 USD/bushel.