China Deploys Autumn Grain Purchasing, Backs Market-Led Buying by COFCO and Other Major Firms

The National Food and Strategic Reserves Administration convened a national autumn grain purchasing conference in Chengdu, Sichuan province, from September 15 to 16, 2026, to assess market conditions and set out arrangements for the autumn grain purchasing season. The meeting called for efforts to keep the grain market stable and grain prices at a reasonable level, providing favorable conditions for high-quality economic and social development. Summer grain purchasing is drawing to a close, while autumn grain purchasing is about to begin. Autumn grain covers many varieties, a large scale and a wide area, and accounts for three-quarters of the country's annual grain output.

On the market side, average prices for mid-to-late indica rice, japonica rice and corn have declined from the same period in 2025, while average domestic soybean prices have risen from a year earlier. On the climate side, a super El Nino event is continuing to develop in 2026, and extreme weather has occurred frequently across China. Internationally, global grain prices have become more volatile, and China remains highly dependent on imported soybeans.

In terms of warehouse capacity, localities have prepared sufficient space to meet autumn grain storage and purchasing needs. On financing, the Agricultural Development Bank of China has pre-arranged credit funds for autumn grain purchasing and operates a national credit guarantee fund for grain purchasing loans. Relevant departments have introduced a delivery warehouse plus supply chain financial linkage model, which converts grain as movable property into effective credit assets through electronic warehouse receipts, opening channels for activating storage and circulating funds. On transport, large volumes of grain move out of the northeast, producing and consuming regions have strengthened coordination, and grain enterprises have connected with logistics companies to keep the north-to-south grain transport corridor running.

China's policy-based purchasing and storage tools mainly include rotation purchases for reserve grain, minimum purchase price purchases and local temporary storage purchases. Whenever new grain comes to market, reserve grain at all levels begins rotation purchases. When paddy purchase prices in major producing areas fall below the minimum purchase price for three consecutive days, the minimum purchase price plan is triggered. For grain that fails to meet standards because of disasters, local temporary storage purchases are used to classify and store it promptly.