Na­tion to be­come key player in global soy­bean pric­ing sys­tem: an­a­lysts

Global Times US Edition - - BIZOVE - By Wang Yi

As the global soy­bean sup­ply pat­tern un­der­goes a trans­for­ma­tion, the big­gest im­porter – China – is likely to be­come a key player in a multi-po­lar pric­ing sys­tem, ex­perts said on Tues­day.

“The cur­rent global soy­bean pric­ing sys­tem, which is dom­i­nated by the US’ Chicago Board of Trade (CBOT), may be­come a multi-po­lar one,” Li Guox­i­ang, a re­search fel­low at the Chi­nese Academy of So­cial Sciences’ Ru­ral De­vel­op­ment In­sti­tute, told the Global Times.

For the 2018/19 mar­ket­ing year from Septem­ber 2018 to Au­gust 2019, China is fore­cast to con­sume the equiv­a­lent of nearly one-third of ev­ery acre of soy­beans har­vested in the world, ac­cord­ing to the Amer­i­can Farm Bureau Fed­er­a­tion.

China is in­creas­ing soy­bean im­ports from Brazil, Ar­gentina, Canada and Ukraine be­cause the on­go­ing trade war be­tween China and the US has curbed US ex­ports to China.

“The Dalian Com­mod­ity Ex­change (DCE) has raised its pro­file in the global mar­ket. China’s pas­sive ac­cep­tance of CBOT prices is likely to change, be­cause in agri­cul­tural trade, buyers have more bar­gain­ing power,” Li said.

“We could change the global soy­bean pric­ing struc­ture,” said a part­ner at a Brazil­ian agri­cul­tural con­sult­ing com­pany, speak­ing at the China In­ter­na­tional Oils and Oilseeds Con­fer­ence in Guangzhou, cap­i­tal of South China’s Guang­dong Prov­ince, in the past week, the China Se­cu­ri­ties News re­ported on Mon­day.

“As the US dol­lar is fluc­tu­at­ing, we could link the price of soy­bean fu­tures to the DCE, so that there is a safer and more sta­ble price to sta­bi­lize the mar­ket,” the per­son said.

The DCE has rolled out fu­tures and op­tions for soy­beans and re­lated prod­ucts, cover­ing the whole in­dus­trial chain. Its con­tracts in­clude fu­tures for soy­bean meal and soy­beans. It launched soy­bean meal op­tions on March 31, 2017, ac­cord­ing to the official web­site of the DCE.

How­ever, it should also be ac­knowl­edged that it still needs some time for China to play a truly equal foot with the in­ter­na­tion­ally dom­i­nant or­ga­ni­za­tion. fou ris loc for in cng say siti int tra an ter pen the latt Jia mo am the the nit

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