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10

2022

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12

China's Beef Market Monthly Review: Diverging Trends in Spot & Futures

Source:

OIG+X

This week, futures offers were stable on the whole, but the suspension of price falling failed to stimulate more demands in the Chinese market. People maintained wait-and-see attitudes towards the not ideal market environment and not cost-effective prices with low willingness to bargain the offer. Offer prices were more chaotic and buyers had less selling-out behaviours compared with before.


Week 1 (Nov 1-6)

This week, futures offers were stable on the whole, but the suspension of price falling failed to stimulate more demands in the Chinese market. People maintained wait-and-see attitudes towards the not ideal market environment and not cost-effective prices with low willingness to bargain the offer. Offer prices were more chaotic and buyers had less selling-out behaviours compared with before.


Week 2 (Nov 7-13)

The imported market increased dynamics, but the circulation of products was still concentrated in the wholesale one. As the actual consumption rate of products didn't change, downstream buyers had low participation rate of purchasing products. As the Chinese beef market was still trapped in supply-demand contradiction, the market price trend was obscure in the short term and there was no positive signals of effective demand release.

 

Week 3 (Nov 14-20)

Some overseas plants in futures market tentatively raised their prices, mostly at 100-200 US dollars/ton which was stimulated by more participation in futures, the short-term price rise in spot market, and the new epidemic prevention and control measures. China's epidemic prevention and control policies tended to be eased, increasing buyers' confidence.

 

Week 4 (Nov 21-27)

Price trends in spot and futures markets diverged as the price in the former declined mainly in the beef from Brazil yet the one in the latter rose. The different price trends once again put pressure on the procurement. Although the government issued a new policy on epidemic control, there were frequent epidemic outbreaks in many regions in fact. The release of market demand was blocked and the different trends of supply and demand with high inventory continuously hitting a new high also forced the slightly restored market confidence to be frustrated again.