World Grain - June 2015 - (Page 82)

FEATURE China, currency impacting MARKETS T he situation in China remains dominant in markets and especially so in the world oilseeds market, attendees at the recent Cereals Europe 2015 conference heard from a range of expert speakers. They stressed as well how the market can look very different according to the currency you're working in. Michael Jewison of the USDA's World Agricultural Output Board considered how China's population is changing. "Even with increasing urbanization, China has a demographic problem. The population composition by age group is shifting. China has, for the last several years, been aging rapidly and is getting older before it gets rich." Capital investment is no longer enough to be the driver of the economy. "Consumers will have to pick up an ever increasing share of growth," he said. "The overall growth rate is likely to decline." Policy, he noted, still favors corn over soybeans. "Corn is king in China," he said. "China's yield productivity growth, in particular corn yield growth, has lagged that of the U.S." Neil Townsend, director of research at the Canadian Wheat Board, discusses some of the external factors affecting world wheat markets. Photos by Chris Lyddon. 82 by Chris Lyddon World's most populous country continues to push oilseed consumption upward Three quarters of production growth comes from expansion in area. "China's mechanization of agriculture has increased rapidly, but it can certainly get better," he said. The quality of management can also improve. Big farms, LQKLVYLHZDUHDVHI¿FLHQWDVLQWKH86EXWRYHUDOOSURGXF tivity is two decades behind. Meat consumption in China has increased rapidly, he said. But the prices of hogs, for example, are coming down. There's been a surge in sorghum and barley imports. "Nearly all the U.S. sorghum that is exported is expected to go to China," he said. "China is starting to bid sorghum away not only from other importers but also from U.S. doPHVWLF XVHUV7KH HQGXVHU LQ IHHGGH¿FLW 6RXWK &KLQD KDV June 2015 / World Grain /

Table of Contents for the Digital Edition of World Grain - June 2015

World Grain - June 2015
Table of Contents
From the Editor-in-chief - Flour output data points to eating trends
Calendar of Events
News review - Ceremony marks opening of Whitewater Mill
ADM plans extensive improvements at Argentina port
Dangote Flour Mills hurts Tiger’s earnings
GrainCorp Oils increasing oilseed crushing capacity
Noble Agri appoints former ADM executive as CEO Jansen
Hovis names new CEO
Southern Africa nations facing food shortage
EBRD provides loan to Turkish edible oil producer
Gruma full steam ahead on European expansion
Oilseeds, grains push Wilmar earnings up 49%
GrainCorp earnings drop on smaller crop
ADM makes management appointments in key areas
ADM earnings surge on oilseed crush margins
Bunge returns to profit on soybean crushing
GrainCorp plans upgrades at 13 sites
Grain Market Review - Rice
Country Focus - Argentina
Technical Profile - Crustless pan bread favored in Argentina
Feature - Bridging a Gap
Feature - Chinese Reforms Creating Market Uncertainties
Feature - Investing in Food Security
Feature - Grain Storage and Handling Projects
Feature - IAOM Conference 2015
Feature - China, currency impacting markets
Feature - A new plan for Egypt
Feature - Team approach to marketing for Canadian grains
Canadian wheat customers share their experiences
Feature - IAOM MEA District Conference & Expo
Feature - Traders Utilizing Exchanges More than Ever
Supplier News
Product Showcase
World Grain Archive
Advertiser Index

World Grain - June 2015