玉米产品中国新闻(玉米产品中国新闻1804)

Auction of corn stored temporarily accelerated corn de-stocking in April. However, the booming transaction did not provide a boost for the corn market. On 3–4 May as additional 8 million tonnes of corn will be auctioned, plus the closing subsidy for feed enterprises in Jilin and Heilongjiang, corn price will keep low in the near future.

Chinese government reshuffle has been witnessed after the Two Sessions concluded in late March. Some changes have also occurred in the imported feed industry. Higher standards and stricter measures will be put forward on imported feed products, especially pet food which developed rapidly in the past 2 years.

The escalating China-US trade war is undoubtedly the hottest issue at present, China decided to slap extra tariffs of up to 25% on agricultural produce imported from the US, and impose temporary anti-dumping measure on sorghum imported from the US. CCM believes that these will to some extent benefit the domestic corn market.

The fuel ethanol industry is growing. Heilongjiang will determine the contractors for its corn ethanol projects by bidding; China Beidahuang partnered Baobou government to construct a 350,000 t/a fuel ethanol project, marking the company’s first step into the fuel ethanol field. In the future, more enterprises will march into this government-backed industry.

The USD/RMB exchange rate in this newsletter is USD1.00=RMB6.2764 on 2 April, 2018, sourced from the People's Bank of China.

All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.

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