Thursday, April 13, 2017

Ministry of Ag S&D Estimates (Apr 2017)

Only modest changes were made in commodity supply and demand estimates released in the April 2017 China Agricultural Supply and Demand Estimates (CASDE) released by the Ministry of Agriculture.

Feed use of corn for 2016/17 was revised downward by 500,000 mt due to low inventories of swine and continued high imports of corn substitutes--sorghum and barley. However, 2016/17 soybean consumption was raised by 940,000 mt due to an increase in consumption of soybean meal for feed.

Corn imports for 2016/17 were revised upward to 1 mmt, which CASDE authors attribute to high operation rates by industrial processors in the northeast (the logic is not clear here, especially since the CASDE made no change in consumption of corn for industrial processing) and an increase in imports of cheap corn from Ukraine. (Note: the CASDE balance sheet has included the wrong 2015/16 corn import number since February.)

China corn supply and demand
(Ministry of Ag, April 2017)
Item Unit 2015/16 2016/17 Mar 2016/17 Apr
Planted area 1000 ha 38,117 36,026 36,026
Harvested area 1000 ha 38,117 36,021 36,021
Yield Kg/ha 5,892 5,978 5,978
Production MMT 224.58 215.33 215.33
Imports MMT 5.52 0.8 1
Consumption MMT 194.09 211.22 210.72
--Food MMT 7.65 7.82 7.82
--Feed MMT 121.01 133.53 133.03
--Industrial use MMT 54.17 58.25 58.25
--Seed MMT 1.7 1.61 1.61
--Loss and other MMT 9.56 10.01 10.01
Exports MMT 0.01 0.5 0.5
Surplus MMT 35.99 4.41 5.11
*2015/16 import volume shown in CASDE should be 3.2 mmt; surplus is also overstated.

Soybean imports for 2016/17 were revised upward to 86.55 mmt, 1.24 mmt more than estimated last month. CASDE expects soybean import demand to be stimulated by low world prices attributed to a record harvest of South American soybeans. CASDE explains that the expected increase in soybean meal consumption is due to its price advantage over other feeds.

China soybean supply and demand
(Ministry of Ag, April 2017)
Item Unit  2015/16  2016/17 Mar 2016/17 Apr
Planted area 1000 ha 6,590 7,156 7,156
Harvested area 1000 ha 6,590 7,150 7,150
Yield Kg/ha 1,762 1758 1758
Production MMT 11.61 12.57 12.57
Imports MMT 82.89 85.31 86.55
Consumption MMT 96.67 99.87 100.81
--Crushing MMT 82.89 85.50 86.12
--Food MMT 10.35 11.18 11.18
--Seed MMT 0.54 0.61 0.61
Loss and other MMT 2.89 2.58 2.9
Exports MMT 0.11 0.2 0.2
Surplus MMT -1.96 -2.19 -1.89

CASDE revised its estimate of 2016/17 edible oil production upward by 220,000 mt to 26.11 mmt. This reflects mainly a 200,000-mt increase in soybean oil production, which in turn reflects larger imports of soybeans. Rapeseed oil production has been revised downward by 10,000 mt due to poor growing conditions in some regions.

China edible oils supply and demand (Min Agriculture, April 2017)
Item Unit 2015/16 2016/17 Mar 2016/17 Apr
Production MMT 25.3 25.89 26.11
--Soy oil MMT 14.74 15.17 15.37
--Rapeseed oil MMT 5.6 5.61 5.6
--Peanut oil MMT 3.01 3.18 3.18
Imports MMT 5.81 5.6 5.6
--Palm oil MMT 3.39 3.25 3.25
--Rapeseed oil MMT 0.77 0.75 0.75
--Soy oil MMT 0.59 0.58 0.58
Consumption MMT 31.17 31.43 31.43
--Urban MMT 20.95 21.4 21.4
--Rural MMT 10.22 10.03 10.03
Exports MMT 0.12 0.13 0.13
Surplus MMT -0.18 -0.07 0.15

No changes were made in the cotton S&D.
China cotton supply and demand (Ministry of Ag, April 2017)
Item Unit 2015/16 2016/17 Mar 2016/17 Apr
Begin inventory MMT 12.8 11.11 11.11
Planted area 1000 ha 3,267 3,100 3,100
Yield Kg/ha 1,510 1,523 1,523
Production MMT 4.93 4.72 4.72
Imports MMT 0.96 0.90 0.90
Consumption MMT 7.56 7.59 7.59
Exports MMT 0.02 0.01 0.01
End Inventory MMT 11.11 9.13 9.13

CASDE revised its estimate of 2016/17 sugar output downward by 450,000 metric tons to 9.25 mmt. Agricultural officials on the ground have observed that area planted in sugar is less than previously estimated.
China sugar supply and demand (Ministry of Ag, April 2017)
Item Unit 2015/16 2016/17 Mar 2016/17 Apr
Planted area 1000 ha 1423 1433 1349
--sugar cane 1000 ha 1295 1270 1181
--sugar beets 1000 ha 128 163 168
Yield
--sugar cane MT/ha 60.3 60 60
--sugar beets MT/ha 53.85 52.5 52.5
Sugar output MMT 8.7 9.7 9.25
--sugar cane MMT 7.85 8.65 8.22
--sugar beets MMT 0.85 1.05 1.03
Imports MMT 3.73 3.5 3.5
Consumption MMT 15.2 15 15
Exports MMT 0.15 0.07 0.07
Surplus MMT -2.92 -1.87 -2.32

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