Latest News From China

Reports say China has purchased more than 20 cargoes of feed grain in the past two weeks. Where is China buying from, and what's behind the sudden surge?

Experts are watching global dynamics to understand the input market’s longer-term outlook in the U.S. Among their top concerns are geopolitics, weather and low supply.

Just this week, China’s largest real estate firm was told it must liquidate after trying to restructure for two years. Some experts say the country is teetering on a recession.

Steve Cubbage explores the true intentions behind foreign land ownership, and if it could be planting seeds of risk for our food security and national security.

In October 2023, Arkansas became the first state to ban foreign-owned farmland. More states look to adopt similar laws, but one policy expert says the issue is rooted in politics and warns of unintended consequences.

From the election to world trade, as well as geopolitical factors that have the potential to shape agriculture in 2024, the December Ag Economists' Monthly Monitor shows the possibility of several economic surprises.

Chinese importers bought around 10 cargoes of soybeans, or about 600,000 metric tons, for shipment from Gulf Coast and Pacific Northwest export terminals between December and March.

A delegation from 11 ag industry groups gathered in Beijing on Thursday to meet Chinese counterparts amid growing U.S. efforts to bolster farm trade even as political ties between their two countries remain strained.

Recently a new theory of comprehending Chinese government action has emerged and seems plausible if not likely: Xi Jinping may not be the sharpest pencil in the box, even borderline incompetent.

A larger issue than foreign ownership of U.S. land is potentially being overlooked.

China's Commerce minister expressed concerns over trade and tech restrictions to U.S. Senate Majority Leader this week. That's as the U.S. Commerce Department added 42 more Chinese companies to the export blacklist.

China's GDP growth could possibly drop lower than the U.S. this year. In fact, fewer and fewer sectors are healthy, and only then by direct government intervention.

John Phipps says the rapid reduction in farmer numbers is a result of government efforts to raise money, since the government owns the land, and achieve modest economies of scale for added productivity.

Roughly 37.6 million acres of U.S. ag land is foreign owned, according to USDA. However, select purchases of U.S. land could come to an end following a Senate vote this week.

The July Ag Economists' Monthly Monitor showed several key changes from June including a bigger cut to corn and soybean yields, a drop in corn and soybean prices and more bullish cattle and hog prices.

The House Select Committee on the Chinese Communist Party (CCP) introduced an act to prevent foreign adversaries from exploiting U.S. land near security sites, and would push a review of current ownership in these areas.

This slump, deeper than May's 7.5% drop, represents the largest decline since February 2020.

Beijing on Monday announced export controls on gallium and germanium. Now the Biden administration is set to restrict Chinese companies’ access to U.S. cloud-computing services that use AI chips.

The U.S. and China have reportedly made “progress” and agreed to stabilize their relationship, but no major breakthroughs were outlined during the two-day meeting between U.S. and China high-ranking officials.

China's exports to Russia reached a record high in April, amounting to $9.6 billion.

It may seem like years ago, but it was just this past June when farmers reported selling $8 cash corn and $18 cash soybeans. Today, cash prices look much different–hovering around $5.50 for corn and $13 for soybeans.

The Office of Investment Security proposed a rule on Friday that would require foreign entities to garner U.S. government approval before they are able to purchase land within 100 miles of eight military bases.

China canceled more corn purchases this past week. As the country switches to cheaper sources from places such as Brazil, it puts more focus on a possible demand problem in the U.S. and causing beginning stocks to swell.

The Missouri Senate on Wednesday backed a plan to amend the state's foreign land ownership threshold. The bill also includes a provision that would limit foreign countries from acquiring farmland in Missouri by Sept. 1.

China's soybean acreage may only slightly increase this year, an official said on Thursday, suggesting output is unlikely to match last year's jump due to soft prices.

Several grain companies announced plans to stop Russian grain exports as of July 1. As Russia tries to take control of its domestic grain industry, analysts think it will ultimately hurt Russian grain farmers.

USDA's reports showed some surprises last week, including tighter than expected stocks. If China continues to buy corn, analysts say it creates even tighter old crop stocks, but if China quits buying, prices could drop.

Chinese pork processing giant WH Group processed 30% more poultry last year. Competition in pork processing is growing in China, with more hog producers building slaughterhouses to integrate operations.

China continued to buy U.S. corn this week, and analysts say China may not be finished, especially if prices dip, and China sees it as an opportunity to buy more.

China's recent business is welcome with U.S. corn exports running behind last year’s pace by nearly 40%. So why is China back in the market and how much more will they buy?  

Sluggish corn demand in the U.S. has been the concern for months. This past week, demand got a big boost, with USDA reporting daily flash sales from China. Since March 9, those sales total 83.1 million bushels.

Former President Donald Trump placed tariffs on more than $300 billion in Chinese goods during his presidency, raising costs for American companies, according to the ITC.

Russia badly needs to replace expended and outdated Soviet arms while China needs Russian energy. That is compelling math. This is bad news not just for the heroic people of Ukraine, but Europe and the US.

"In this current situation, the traditional approach to free trade agreements — which isn't just tariff cuts, but that they do tariff cuts on a fully comprehensive basis — isn't what we need right now,” Tai says.

While Beijing denies the balloon that flew over the U.S. in early February was a government spy vessel, market analysts warn farmers the situation could ultimately impact export demand down the road.

Much ink and many pixels have been wasted, in my opinion, on rants about people other than U.S. farmers owning farmland. Surprisingly, critics are just as hard on wealthy Americans as foreigners.

Officials in China now say the population sits at 1.4 billion, which came as a surprise to many economists and market analysts. The news draws concerns about what it means for demand both short- and long-term.

China, the top food importer on the planet and biggest buyer in history, is entangled in a potentially devastating population crash and the effect could be massive for U.S. agriculture.

If the nation’s debt hits $31.4 trillion—it’s on track to do so by this Thurs.—the Treasury will need to take “extraordinary measures” to help pay the government's operations and ward off a historic default.

Demand concerns have been intensifying with the spike in Covid numbers in China.  That’s been sending a negative tone across the energy sector, equities and portions of the ag markets. 

China's state-owned grains trader COFCO said a new joint venture it has set up with state stockpiler Sinograin to manage the country’s grain reserves will officially begin operations next month.

Export tariffs on aluminum and aluminum alloys will be raised. The current import tariff will stay on seven types of coal until March 31, with tariffs adopted for most favored nations from April 1.

AgWeb is counting down the top 10 stories of the year. At No. 8, and originally posted on Aug. 3, Fufeng Group bought 300 acres of land in North Dakota and the proximity to a U.S. military base has many concerned.

Taiwan’s defense ministry said China sent 71 warplanes and seven naval vessels on “strike drills”⁠ — rehearsals for conflict ⁠— into its air-defense zones.

There has been a widening gulf between the official numbers and anecdotal evidence of spiraling infections on the ground.

“There is a problem with people thinking the pullback of Covid-zero measures is equivalent to the economy reopening, which it is not." says Leland Miller, CEO of research firm China Beige Book.

John Phipps has noticed more unsettling problems for the second-largest nation to the point that despite their skills and accomplishment, he thinks China is heading for trouble. He explains why in John's World.

The top official in charge of China’s COVID-19 response told health officials Wednesday that the country faced a “new stage and mission” in pandemic controls.

China moved to close parks, malls and museums on Tues. as COVID-19 cases hit near-record levels. Lockdowns follow reports that, days before COP27, Xi sent policy and business advisers to New York to meet U.S. executives.

"We need to find the right direction for the bilateral relationship going forward and elevate the relationship," Xi said, while Biden stressed that the two countries can compete without it turning into a conflict.