March 6, 2008

China's corn production to drop 6 percent in 2007-08 on adverse weather

China's corn production was estimated to drop 6 percent in 2007-08 marketing period as yield is forecast to dip by 9 percent, the USDA's Foreign Agricultural Service (FAS) reported.

Corn production for 2007-08 is pegged at 137 million tonnes, down 6 percent from the previous year as yields decline due to unfavorable weather conditions in key production areas.

Meanwhile, China's corn production forecast for 2008-09 is at 143 million tonnes as the government is expected to tighten exports.

The Chinese government is also expected to continue boosting grain production through a series of policies, including direct payments, price supports, and a machinery subsidy. 

Furthermore, China is seen to remain as a net exporter for wheat and corn in 2008-09.

Overall, the country's total grain acreage increased in the marketing year 2007-08, propelled by strong market demand and government support programmes.