Daily Update — June 3, 2026
China’s Role in Global Protein Trade; PepsiCo Uses AI for Resilience; and APAC Bets on Renewable Hydrogen
Today is Wednesday, June 3, 2026, and here’s your curated selection of Essential Intelligence on global markets from S&P Global. Subscribe to be notified of each new Daily Update.
Energy Expansion
China's pivotal role in global protein trade
As one of the largest importers of animal proteins and soybeans, China plays an influential role in global protein trade. China’s soybean imports grew 7% year over year in 2025, driven by strong demand for animal feed, but animal protein imports such as pork, beef and shrimp declined. Demand for protein imports has remained steady over the past six years, though a shift is starting to occur as the country ramps up domestic production and diversifies its sourcing.
China is tightening its beef safeguard measures and has set 2026 import quotas for Brazil at 1.1 million metric tons, Australia at 205,000 mt and the US at 164,000 mt. The country is also pushing for increased domestic production of pork and shrimp. These changing demand patterns could lead to shifts in global trade flows and more volatility in animal protein pricing. To track these market changes, Platts, part of S&P Global Energy, has launched weekly price assessments for Front Forequarter Eight cuts (FFQ 8) Beef CFR China and head-on, shell-on (HOSO) Shrimp CFR China, effective June 1, 2026.
Artificial Intelligence
Listen: CSO Insights: How food and beverage giant PepsiCo uses AI for its 'era of resilience'
PepsiCo is one of the world’s biggest food and beverage companies and sells products in more than 200 countries and territories. In this episode of the “All Things Sustainable” podcast, hosts Lindsey Hall and Esther Whieldon spoke with PepsiCo Chief Sustainability Officer Jim Andrew about how the company is building resilient food systems. Andrew explained how PepsiCo works with its global farmer network to create long-term value in a food system facing increasing stress from climate change, resource constraints and geopolitical uncertainty.
“All these things are hitting — food, water, energy, supply chains — all at once. And so, what used to be the occasional rare disruption now really shows up all the time,” Andrew said. "So, what we're preparing for here at PepsiCo is what I call the ‘era of resilience.’”
Andrew said AI is part of that resilience strategy, from helping farmers to reduce their use of pest control chemicals to making PepsiCo’s plants and vehicle fleets operate more efficiently.
Global Trade
Asia-Pacific bets big on renewable hydrogen as deals, infrastructure, prices align
Asia-Pacific could become a key driver in commercializing low-carbon hydrogen and its derivatives, with firm supply agreements, emerging infrastructure buildouts and low production costs signaling the region's ambition to anchor the global clean fuel trade. The region hosts about 795 projects with a combined projected capacity of about 35.20 million metric tons per year, including renewable-derived and fossil fuel-based hydrogen with carbon capture, according to S&P Global Energy's Hydrogen Production Assets database.
The Middle East war could accelerate a structural shift, with the transport, power and industrial sectors increasingly pivoting toward renewables and low-carbon hydrogen — a transition already beginning to take shape across the region, according to Nobuo Tanaka, chair of the steering committee of the Innovation for Cool Earth Forum and former executive director of the International Energy Agency.
"The oil shock will certainly push Asian countries into the more energy-efficient model of economic growth," Tanaka said.
In case you missed it
- Securities firms are prioritizing earnings bases resilient to market conditions amid high geopolitical risk, such as that related to the war in the Middle East.
- US auto sales for May 2026 are projected to reach approximately 1.44 million units, according to S&P Global Mobility. This translates to an estimated sales pace of 15.8 million units, which is down slightly from March and April but above year-ago results.
- Insurers are prepared to handle any fallout from the looming hurricane season, despite forecasts calling for a decreased amount of activity, as local and state officials warn against complacency.
Upcoming events
- Unlocked Insights: The Strait of Hormuz Crisis and Global Energy Resilience | June 4 (Webinar)
- Private Market Valuations: From Vanilla to Complex Structures — Part II: Direct and Indirect Equity Investments | June 9 (Webinar)
- The Container Port Performance Index 2025: A Comparable Assessment of Performance Based on Vessel Time in Port | June 10 (Webinar)
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