Matter

General Administration of Customs announced in 2008 January-December, the cumulative foreign cotton imports 2.11 million tons; the annual imports of 37.44 million tons of soybean.

Comments:

1. According to the latest Customs data show that in December 2008, China’s cotton imports to 168,000 tons, 92,000 tons increase from the previous month, representing an increase of 122%; year-on-year reduction of 154,000 tons, or 47.8 percent.

2. According to statistics, as of December 2008, 2008/09 annual cumulative imports 469,000 tons of cotton, 326,000 tons year-on-year to reduce, or 40.9 percent. 2008 January-December, the cumulative foreign cotton imports 2.11 million tons, up 350,000 tons to reduce, or.

3. Chinese customs data released Tuesday show that China’s soybean imports last year reached a record 37.44 million tons, up 21.5 percent, due to the Chinese government to increase the national reserves to increase purchases.

4.2008 years in December, China’s imports of soybean 3,300,000 tons, an increase of 12.8 percent, with basically the same as in November. Freight costs decline and the Chicago Board of Trade (CBOT) soybean futures contract fell the end of last year, making China the importers purchase costs.

5. The Chinese Government to the acquisition of domestic soybean prices also led to some crushing plants, especially in the north, use of imported soybean. In addition to agreeing to buy from farmers of six million tons of domestic soybean, the Chinese government last year imported about two million tons of soybean as a national reserve. China, as the world’s largest vegetable oil-consuming countries, last year also bought 8.16 million tons edible oil, including palm oil and soybean oil. December imports of 750,000 tons, in November than 850,000 tons of imports decreased.

6. Investment advice: the maintenance of agriculture, forestry, animal husbandry and fisheries industries overweight rating. The maintenance of the Great Northern Wilderness (12.55, -0.04, -0.32%,) (600,598),(12.20,0.27,2.26%,) (000,860), Tianbao shares (002,220), in animal husbandry shares (13.26,0.04, 0.30%,) (600,195) overweight rating.

7. Risk: by the macro-economic impact, agricultural products (13.67,0.44,3.33%,) Price greater pressure.