At present, only the mechanization of the main grain crops has reached a high level, but there are many blanks in agricultural machinery products in hilly areas, cash crops, and many other fields. Many key links in agricultural production lack suitable machinery. The following is an analysis of the current status of the agricultural machinery industry. The analysis of the agricultural machinery industry shows that agriculture is China's basic industry and has a key effect on China's economic development. Judging from the state of agricultural development in China, there is still a great distance compared with developed countries, and the degree of mechanization of production needs to be further strengthened. The use of agricultural machinery in the development of agricultural production can be useful to promote the progress of productivity. In recent years, China has also made great efforts in the field of agricultural mechanized agricultural tools, and then gave great progress to the development of agriculture in China. The development of agricultural mechanization and the promotion of skills have been gradually implemented, and the introduction of foreign agricultural mechanization skills has greatly promoted the level of agricultural mechanization in China. Through the analysis of the current situation of the agricultural machinery industry, agricultural machinery covers a wide range, and is the general term for power machinery and working machinery in the production and application process of planting, animal husbandry, forestry and fishery. Agricultural machinery includes agricultural power machinery, farmland construction machinery (600984), soil tillage machinery, planting and fertilizing machinery, plant protection machinery, farmland irrigation and drainage machinery, crop harvesting machinery, agricultural product processing machinery, animal husbandry machinery and agricultural transportation machinery. In 2017, the growth rate of the agricultural machinery industry increased by 9.1%, an increase of 1.4% over the previous year. The main business income of 2,429 enterprises above designated size in the 12 sub-sectors of the agricultural machinery industry was 429.135 billion yuan, an increase of 6.15% over the previous year. In the entire machinery industry, the growth rate of the agricultural machinery industry fell from the “outstanding” to the last; the profit was 22.301 billion yuan, an increase of 8.52% year-on-year. Through the analysis of the current situation of the agricultural machinery industry, the growth rate of the agricultural machinery industry in 2017 increased by 9.1%, an increase of 1.4% over the previous year. The main business income of 2,429 enterprises above designated size in the 12 sub-sectors of the agricultural machinery industry was 429.135 billion yuan, an increase of 6.15% over the previous year. The revenue from the main business increased by 5.80% in 2016. The sub-sectors with higher growth rate were 54.87% of fishery machinery, 44.49% of forestry machinery, and 26.62% of livestock machinery. In 2017, the industry realized a profit of 24.312 billion yuan, an increase of 8.10%. The profit growth was higher than the income growth, and exceeded the industry's general expectations. The products with relatively large growth increased the livestock machinery by 33.74%; the fishing machinery increased by 34.70%; the total profit of tractors increased by 23.08%. The development of China's agricultural machinery industry has been pursuing rapid growth, gradual transition to the pursuit of high-quality development, and the industry has entered a period of deep transformation and adjustment. The above is all the content of the analysis of the status quo of the agricultural machinery industry.
Gloen Exchange announced on November 2nd at the China National Cereals and Oils Holding Co., Ltd. (2.83, 0.01, 0.36%) (00606.HK), at the extraordinary general meeting held at 10:00 on November 2, 2018, due to the first and second The resolutions have been approved by the independent shareholders of the company and some of the conditions precedent of the COFCO International Master Agreement and the Capital Increase Agreement as disclosed in the Circular have been fulfilled. The COFCO International Master Agreement and the Capital Increase Agreement are subject to the fulfillment of a number of conditions and may not be implemented. The above-mentioned COFCO International Master Agreement involves the company's wholly-owned subsidiary Zhongchangsheng, COFCO Oil Second Company and COFCO Oil, and intends to acquire the entire share capital of each COFCO International Target Company for a total consideration of RMB 1.341 billion (subject to adjustment) in US dollars. Two cash payments. After the delivery of the COFCO International Master Agreement, COFCO International Target Company will become a wholly-owned subsidiary of the company. The capital increase agreement involves the company's wholly-owned subsidiary COFCO (Dongguan) having the condition to invest RMB 620 million in COFCO Trading (Guangdong) to subscribe for its newly registered capital of approximately RMB 598 million, equivalent to COFCO Trading (Guangdong) in the Capital Increase Agreement. After the settlement, 75.264% of the registered capital was expanded. After the completion of the capital increase agreement, COFCO Trading (Guangdong) will become a subsidiary of the company. According to the previous announcement, COFCO International Target Company includes COFCO International Singapore, Great Wall Investments, Sino Agri-Trade and related entities held by Hong Kong Mingfa (ie Qinzhou Dayang, Mingfa International, Longkou Xinlong and Chongqing Xinyi). It has four oilseed processing plants located in Chongqing, Longkou, Shandong Province, Taixing, Jiangsu Province and Qinzhou, Guangxi Zhuang Autonomous Region. COFCO International Target Company is principally engaged in the business of soybean crushing and soy oil refining and trading. The total annual production capacity (assuming 300 days of operation per year) is as follows: pressing: about 2.7 million tons of leap year; refining: about 830,000 tons. For the years ended December 31, 2016 and 2017, the revenue of COFCO International Target Company was RMB 6.617 billion and RMB 7.486 billion respectively; the after-tax profit was RMB -145 million and RMB 353 million, respectively. COFCO Trading (Guangdong) is mainly engaged in the storage and handling of a variety of food, oilseeds, edible oils and fats, and the relevant port terminal facilities are under construction. The port is expected to be operational by 2020. Upon completion of the construction, the port is expected to have an annual throughput of approximately 2.9 million tons and an annual storage capacity of approximately 220,000 tons. The reasons for exercising some COFCO international options are: first, the industry's profitability has recovered in the past few years, second, downstream demand continues to grow, third, industry consolidation continues to advance, large-scale enterprise advantages are highlighted; fourth, continue to promote corporate strategy Planning; Fifth, sales continued to grow at a high level, and the operating rate reached a historical high. Further development required capacity scale support; sixth, solving competitive business problems. The benefits of the transaction, one is to enhance the company's industry position and consolidate its competitive advantage: after the completion of the transaction, the company's annual soybean crushing capacity will increase from about 12.93 million tons to about 15.63 million tons, assuming the COFCO International Target Company The acquisition took place on December 31, 2017. Compared with self-built expansion, the acquisition of COFCO International Target Company will enable the company to expand production capacity in a faster way and at a lower cost, in order to enhance its position in the industry and consolidate its competitive advantage. Second, to assist in the development of small-package edible oil business: the transaction will enhance the company's bulk oil supply capacity, providing a variety of stable, high-quality sources for high value-added small package products. In addition, the transaction will provide support for small-package edible oil sales in the supply chain and storage facilities, helping the company achieve its business goal of doubling the sales of small-package edible oil in two to four years. Third, improve the production capacity layout, shorten the supply radius, and improve the customer service level: the transaction will improve the national layout of the company's oilseed processing capacity, enhance business choice flexibility, better grasp market opportunities, and create trade opportunities. The company will increase the crushing capacity in Chongqing and northern Shandong provinces to better cover the surrounding market areas, effectively shorten the sales distance and save logistics costs. Customer demand and market information feedback will also be more rapid, improving product freshness and customer service. Fourth, release potential synergies: share operational capabilities: take advantage of the company's oilseed processing business in risk management and control, industrial chain operations, etc. After the completion of these transactions, it is expected to focus on improving the competitiveness and performance of COFCO's target companies. The coordinated growth of the Group's business scale and return capability. Enhance the capacity utilization rate of COFCO's target company's plants: The capacity utilization rate of COFCO's target plants in 2017 is about 60%. After the transaction is completed, the management will focus on improving the operational capabilities of these plants and strengthening their synergy with the company's existing plants to increase their capacity utilization. Shared logistics resources: The same regional crushing plant can combine shipping orders and share transportation facilities such as ferries, reducing procurement costs and making logistics more efficient and faster. Shared management team to optimize labor costs: The same management team can operate between adjacent plants to optimize administrative costs and increase efficiency. Share sales channels and enhance market influence: It can integrate and expand sales channels and expand market share. Announced that at the extraordinary general meeting held at 10:00 am on November 2, 2018, as the first and second resolutions were approved by the independent shareholders of the Company, the COFCO International Master Agreement and the Capital Increase Agreement disclosed in the Circular Some of the prerequisites have been fulfilled. The COFCO International Master Agreement and the Capital Increase Agreement are subject to the fulfillment of a number of conditions and may not be implemented. The above-mentioned COFCO International Master Agreement involves the company's wholly-owned subsidiary Zhongchangsheng, COFCO Oil Second Company and COFCO Oil, and intends to acquire the entire share capital of each COFCO International Target Company for a total consideration of RMB 1.341 billion (subject to adjustment) in US dollars. Two cash payments. After the delivery of the COFCO International Master Agreement, COFCO International Target Company will become a wholly-owned subsidiary of the company. The capital increase agreement involves the company's wholly-owned subsidiary COFCO (Dongguan) having the condition to invest RMB 620 million in COFCO Trading (Guangdong) to subscribe for its newly registered capital of approximately RMB 598 million, equivalent to COFCO Trading (Guangdong) in the Capital Increase Agreement. After the settlement, 75.264% of the registered capital was expanded. After the completion of the capital increase agreement, COFCO Trading (Guangdong) will become a subsidiary of the company. According to the previous announcement, COFCO International Target Company includes COFCO International Singapore, Great Wall Investments, Sino Agri-Trade and related entities held by Hong Kong Mingfa (ie Qinzhou Dayang, Mingfa International, Longkou Xinlong and Chongqing Xinyi). It has four oilseed processing plants located in Chongqing, Longkou, Shandong Province, Taixing, Jiangsu Province and Qinzhou, Guangxi Zhuang Autonomous Region. COFCO International Target Company is principally engaged in the business of soybean crushing and soy oil refining and trading. The total annual production capacity (assuming 300 days of operation per year) is as follows: pressing: about 2.7 million tons of leap year; refining: about 830,000 tons. For the years ended December 31, 2016 and 2017, the revenue of COFCO International Target Company was RMB 6.617 billion and RMB 7.486 billion respectively; the after-tax profit was RMB -145 million and RMB 353 million, respectively. COFCO Trading (Guangdong) is mainly engaged in the storage and handling of a variety of food, oilseeds, edible oils and fats, and the relevant port terminal facilities are under construction. The port is expected to be operational by 2020. Upon completion of the construction, the port is expected to have an annual throughput of approximately 2.9 million tons and an annual storage capacity of approximately 220,000 tons. The reasons for exercising some COFCO international options are: first, the industry's profitability has recovered in the past few years, second, downstream demand continues to grow, third, industry consolidation continues to advance, large-scale enterprise advantages are highlighted; fourth, continue to promote corporate strategy Planning; Fifth, sales continued to grow at a high level, and the operating rate reached a historical high. Further development required capacity scale support; sixth, solving competitive business problems. The benefits of the transaction, one is to enhance the company's industry position and consolidate its competitive advantage: after the completion of the transaction, the company's annual soybean crushing capacity will increase from about 12.93 million tons to about 15.63 million tons, assuming the COFCO International Target Company The acquisition took place on December 31, 2017. Compared with self-built expansion, the acquisition of COFCO International Target Company will enable the company to expand production capacity in a faster way and at a lower cost, in order to enhance its position in the industry and consolidate its competitive advantage. Second, to assist in the development of small-package edible oil business: the transaction will enhance the company's bulk oil supply capacity, providing a variety of stable, high-quality sources for high value-added small package products. In addition, the transaction will provide support for small-package edible oil sales in the supply chain and storage facilities, helping the company achieve its business goal of doubling the sales of small-package edible oil in two to four years. Third, improve the production capacity layout, shorten the supply radius, and improve the customer service level: the transaction will improve the national layout of the company's oilseed processing capacity, enhance business choice flexibility, better grasp market opportunities, and create trade opportunities. The company will increase the crushing capacity in Chongqing and northern Shandong provinces to better cover the surrounding market areas, effectively shorten the sales distance and save logistics costs. Customer demand and market information feedback will also be more rapid, improving product freshness and customer service. Fourth, release potential synergies: share operational capabilities: take advantage of the company's oilseed processing business in risk management and control, industrial chain operations, etc. After the completion of these transactions, it is expected to focus on improving the competitiveness and performance of COFCO's target companies. The coordinated growth of the Group's business scale and return capability. Enhance the capacity utilization rate of COFCO's target company's plants: The capacity utilization rate of COFCO's target plants in 2017 is about 60%. After the transaction is completed, the management will focus on improving the operational capabilities of these plants and strengthening their synergy with the company's existing plants to increase their capacity utilization. Shared logistics resources: The same regional crushing plant can combine shipping orders and share transportation facilities such as ferries, reducing procurement costs and making logistics more efficient and faster. Shared management team to optimize labor costs: The same management team can operate between adjacent plants to optimize administrative costs and increase efficiency. Share sales channels and enhance market influence: It can integrate and expand sales channels and expand market share.
In the early period, the topic of reducing production in Argentina warmed up, pushing the price of soybeans and oysters to rise, but the oil was not able to take advantage of the situation. The poor fundamentals were the main reason. On the supply side, with the rapid growth of global protein demand and the slowdown in oil demand growth. In recent years, global soybean meal feed demand has increased at an average annual rate of 5%, while soybean oil demand growth rate is only 3%. In the case that protein demand becomes the main driving force of crushing, oilseed yield reduction has little effect on crushing, but the output of oil increases with the increase of protein output, and the oil market enters the passive accumulation state. In addition, palm oil production in Southeast Asia continues to recover, and global oil supply is abundant. At the demand side, the consumption of vegetable oil is limited by population and income levels, and the growth rate is limited. At present, global population growth has peaked, and the marginal boost effect of income on vegetable oil consumption has declined. In contrast, industrial consumption has more potential. With the continuous rise of international energy prices and the growth of human demand for renewable energy, the biodiesel industry is once again ushered in a golden age of development. In the future, the key to the growth of vegetable oil consumption will fall on industrial consumption, especially biodiesel consumption. Policy is conducive to biodiesel production Policy guidance and profitability play a key role in biodiesel production and demand. Policies include encouraging the development or mandatory blending of the biodiesel industry, such as the $1/gallon tax credit given to biodiesel blenders in the United States, the EPA's mandatory blending requirements for production and blenders, and the Indonesian B20 program. . Profits mainly include biodiesel production profits and blended profits. Policy and profit affect the production of biodiesel. Under different circumstances, the impact of the two has a primary and secondary impact. When the crude oil price is at a low level, the production and blending of the biodiesel industry is at a loss, and production is heavily dependent on the implementation of subsidies and mandatory blending policies. At this time, the policy plays a leading role in production. When crude oil prices are at a high level, driven by profits, enterprises are more active in production, and commercial blending has also increased. At this time, profits have once again played a leading role in biodiesel production through market-based means. At this time, the demand for oil and fat as a raw material for biodiesel is correspondingly increased, which in turn boosts the price formation. There is a clear positive correlation between crude oil prices and biodiesel production, and this correlation is even closer when crude oil prices are at a high level in 2015. According to calculations, the correlation coefficient between US crude oil price and US biodiesel production was 0.77 in 2003-2014, and the crude oil price fell to less than 0.15 in 2015. The reason is that when the crude oil price is low, the regulation of profit on output is weakened, and the policy effect prevails. This also supports the above viewpoint from the side. Currently, relevant industrial policies are more favorable for biodiesel production. Following Indonesia's expansion of biodiesel subsidies to the mining industry at the beginning of the year, the Indonesian government is testing to increase the biodiesel blending rate to 30%, which is expected to bring 800,000 to 1 million tons of biodiesel consumption. According to the latest EPA draft standard for renewable energy blending, by 2020, the legal blend of biodiesel will reach 2.43 billion gallons, which is nearly 16% higher than the market expectation of 2.1 billion gallons. Profit level has risen to a high level Internationally used biodiesel production monitoring indicators mainly include POGO and BOHO. Among them, POGO is the price difference between palm oil and diesel oil, and BOHO is the price difference between soybean oil and fuel oil. These two indicators are widely used in the biodiesel and downstream middle distillate markets, respectively, indicating the price comparison between the palm oil/soybean oil feed and the gasoline and diesel market. The narrowing of the POGO (BOHO) spread indicates that the cost of producing biodiesel using palm oil (soybean oil) will be closer to the cost of gasoline and diesel. If the production cost of PME (SME) is lower than the price of gasoline and diesel, the production of biodiesel will be driven by profit. Free growth, while the impact of blending on production is weakened. Because of the low price of palm oil, it is more economical to produce biodiesel. In general, POGO is lower than BOHO, which means that when crude oil prices rebound from low levels, the production of biodiesel from palm oil is the first to have a positive profit, followed by soybean oil and vegetable oil. Therefore, in the early days of crude oil, the rise in palm oil prices was often the most obvious. The OPEC meeting on June 22 reached a nominal production increase agreement of 1 million barrels per day. However, it is difficult for countries with recent decline in production to reach production quotas, and other oil-producing countries may not be able to fill the gap left. The actual increase is expected to be 60. 10,000 - 800,000 barrels. Although the increase in production is not good, the bearishness has basically been cashed in advance. The United States has stepped up its sanctions against Iran and urged its allies to stop importing Iranian crude oil. Recently, the focus of the crude oil market has moved upwards, so that the POGO and BOHO spreads have narrowed. The POGO spread returned to the low end of mid-May and helped to improve the PME blending profit. Countries make full use of local advantages in the production of biodiesel. The main vegetable producing areas in the EU are mainly vegetable oil. The United States is rich in soybeans. The main raw material for producing diesel oil is soybean oil. In Southeast Asia, the most abundant palm oil, the main raw material for biodiesel production. For palm oil. Biodiesel production profit accounting is similar to other products, except for product revenue minus raw material input costs and fixed costs. For the production of biodiesel, the raw materials are all kinds of oils and fats (including soybean oil, vegetable oil, palm oil, corn oil, animal fats, discarded catering oil, etc.) and methanol, and the output is biodiesel and by-product glycerin. Due to fluctuations in the prices of biodiesel and input materials, production profits are also constantly changing, and they need to be accounted for and monitored. According to the distribution of US biodiesel capacity released by EIA in 2017, it is found that the US biodiesel production capacity is spread over more than half of the country. Among them, Iowa, Missouri, Texas, and California have the most production capacity. Among these states, Iowa is a major producer of US soybeans, with a production share of up to 14%. In terms of biodiesel production capacity, the state has 11 processing plants with an annual production capacity of 423 million gallons. Soybean and biodiesel production combine to make SME production in Iowa typical. The profit calculation below is based on the state's processing plant. For a typical SME processing plant, for every 1 gallon of SME produced, 7.6 pounds of soybean oil, 0.71 pounds of methanol, and 7 cubic feet of natural gas are required to obtain 0.9 pounds of by-product glycerin. Other variable costs are $0.25 per gallon, fixed cost. It is $0.26 per gallon. In the specific production profit accounting, biodiesel and soybean oil are quoted from USDA, methanol is quoted from Methanex, natural gas is quoted from EIA, other variable costs are mainly for labor and utilities, and glycerin is quoted at $0.03/ lb. By substituting data, you can calculate the net profit of a typical SME processing plant. For the Iowa processing plant, there has been a certain positive production profit since the beginning of 2017. Since January 2018, the weakening of the US soybean oil and the strength of the crude oil (the BOHO spread has shrunk) has risen rapidly. From February to May 2018, the profit level has risen to a high level since 2015. The increase in production profit directly stimulated the production of biodiesel and the use of US soybean oil. According to EIA data, in March 2018, US biodiesel production was 147 million gallons, a 17% increase from the previous month and a 27% increase from the previous year. From January to March 2018, US biodiesel production was 397 million gallons, an increase of 31.02%. The use of soybean oil in biodiesel shows that in March, the use of soybean oil was 624 million pounds, a 26% increase from the previous month and a 69% year-on-year increase to a record high. From the proportion of soybean oil used in biodiesel production, in March, US soybean oil production was 1.777 billion pounds, of which 624 million pounds were used to produce biodiesel, which resulted in 31.6% of soybean oil used in biodiesel. It rose by about 3.6%. Under the stimulation of high profits, the production of biodiesel in the United States will remain high. Overall, at present, although the oil and fat market is suppressed by high inventory and palm oil production, on the basis of the strength of the crude oil market, the demand for biodiesel can be expected, which will become a potential benefit to boost the trend of oil. In the medium to long term, the low POGO and BOHO spreads are expected to support the price of oil in the biodiesel market. Unless the crude oil price falls sharply, there is limited room for the oil to continue to explore. Later, the focus was on the price trend of crude oil.
