Trade and markets


China (Mainland)
Commodity Group
Oilseeds, oils and meals
Policy Category
Policy Instrument
Support prices
Set official target price for 2014/15 campaign.
Reportedly, between May (when the government began this year’s auctions from state reserves) and early September 2014, more than 5 million tonnes of soybeans have been offered for sale, with only 2.2 million tonnes actually sold. Meanwhile, starting in the current season, the state procurement system for soybeans will be replaced with direct subsidy payments. Instead of selling to the government, farmers will sell their beans in the open market, and whenever market prices fall below a set target prices, the government will pay the difference based on the farmers’ planting area and on volumes sold to crushers. For the 2014/15 campaign, the official target price has been set at Yuan 4 800 per tonne (USD 784). For comparison, last season, the official purchase price had been fixed at Yuan 4 600 per tonne (USD 752). Reportedly, market prices will be regularly monitored by public officials in the country’s main soybean growing provinces.