China's credit crunch may not affect agricultural trade

Introduction: officials from Dalian Commodity Exchange said on Tuesday that China's tough measures to curb the overheating of the economy will restrict investment interest in the steel and alumina industries, but the prospects for China's agriculture are still clear As the main driving force of global competition growth, China's economy has been growing rapidly and investment has been expanding rapidly, which has caused the market to worry that China may overheat the economy and cause the economic bubble to burst Liu Huajian, executive vice president of GSE, told reporters during a visit to the Chicago Board of trade that the Chinese government is taking measures to control the scale of investment and ensure a soft landing of the economy The steel and alumina industries are expected to be affected, but agriculture is not expected to be affected China's GDP grew 9.8% in the first quarter of 2004 from a year earlier, according to adjusted data released by the National Bureau of statistics on Monday Economists estimate that economic growth may be faster in the second quarter The investment in steel, aluminum and cement industries increased by 96.6%, 92.2% and 121% respectively in 2003, far exceeding the total growth rate of fixed asset investment by 26.7% China's emerging futures market for agricultural products is also growing steadily, officials from the Institute said But at present for the domestic soybean industry is a eventful time! Due to the tight monetary policy and squeezing losses, Chicago's soybean price hit a 15 year high in the early stage, and the high sea freight rate, the domestic soybean processing industry is facing a lot of pressure Over the weekend, officials from 16 major oil plants in China met in Beijing to discuss how to cut soybean imports by 40 to 50 percent in the second half of the year to reduce losses Domestic soybean industry personage said that since the Chinese government tightened monetary policy, many oil plants are facing liquidity shortage Five months ago, China's soybean processing plant signed an intention contract with American grain companies to import 2.5 million tons of American beans in Chicago Executives of Chinese companies visiting the United States also agreed to import another 2.5 million tons of soybeans from the United States, provided the price is appropriate Since then, soybean prices have soared, in part because of strong demand in China But in recent weeks, CBOT soybeans have been in a downward trend because of market rumors that Chinese oil companies have cancelled some contracts, mainly Brazil and Argentina soybeans, and they may cancel more contracts Officials at Chinese oil plants say eight to 12 ships of soybeans have been washed or the contracts cancelled after consultation with suppliers However, it is not clear whether the contracts are American or South American As of May 6, China has purchased and shipped 820000 tons of American soybeans, accounting for about 30% of the total export of American soybeans China also bought 2 million tons of new American beans.