China Rice insights

Lower corn harvest is one factor behind some decline in global grain production in 2024.

Nonghyup is exporting 1,000 tons of domestic rice to China in cooperation with a Chinese cooperative. On the 4th, the National Agricultural Cooperative Federation announced that it signed a contract with the Guangdong Provincial Public Works and Cooperation Association (hereinafter referred to as Guangdong Public Works and Cooperation Association) in Huizhou City, Guangdong Province, China, to export 1,000 tons of rice by the end of the year. At the contract signing ceremony, Vice Chairman Ji Jun-seop of the National Agricultural Cooperative Federation and NH Nonghyup Trade CEO Jin Jong-moon attended and discussed specific rice export and import plans and various agricultural cooperation measures. This rice export is a case of practical cooperation between cooperatives of the two countries through agricultural products and a new way to consume rice, so attention is focused on the background. The idea of rice exports first came up in August when Ye Meifen, the director of the Guangdong Public Works and Cooperation Association, visited Korea to discuss mutual cooperation measures with Nonghyup Central Chairman Kang Ho-dong, and the contract was concluded after Chairman Kang showed strong determination and persuaded the Guangdong Public Works and Cooperation Association, according to Nonghyup. Guangdong Province's food self-sufficiency rate is about 25%, which is relatively low in China, so there is a quota of rice imported every year. In addition, the fact that there is a consumer base that likes the chewy texture of Korean rice was a positive factor in signing the contract. In addition, Chairman Kang, who is also the president of the International Cooperative Agricultural Organization (ICAO), personally requested 'cooperative cooperation' with the Guangdong Provincial Office several times to open up a new rice consumption channel, and the Guangdong Provincial Office also showed a positive attitude to this. The '1,000t' export volume is an unusual amount. According to Nonghyup Economic Holdings, the average annual export volume of domestic rice over the past five years (2019-2023) was around 2,529t. Nonghyup plans to export rice in five batches starting with the initial batch on the 9th and continuing until the end of the year. In order to export to China, rice must go through processes such as fumigation, milling, and packaging, so it is exported in several batches. The target quantity includes rice from agricultural cooperatives registered with local Chinese customs, such as Okcheon Agricultural Cooperative in Haenam, Jeollanam-do. The Guangdong Provincial Office plans to sell rice through its own agricultural product sales outlets. Chairman Kang said, “This rice export based on cooperation between Korean and Chinese cooperatives will serve as a catalyst to further strengthen agricultural exchanges between the two countries.

Corn: Prices decreased Animal feed corn at animal feed factory silos is priced at 585 baht per basket, down from 588 baht per basket. On the Chicago Futures Exchange, on October 30, 2024, the animal feed corn contract for delivery in December 2024 decreased by 2.25 cents, or -0.54%, to close at $4.1150/bushel. The corn contract decreased slightly as the US harvest is nearing completion.