March 9, 2012

China's increasing imports of corn may move up global corn prices further.

According to officials, China had recorded corn harvest for the 2011 at 191.8 million tonnes. But according to some local officials the over state in the size of the China's corn crop is to gain more subsidies from the government.

While if the country's production is lower than the stated production then China will import more corn which could raise the global price of the commodity.

The commodity has already risen to four months high on tightening global supplies. China has purchased around 12,000 tonnes of corn since the harvest completed late last year.

Meanwhile, according to USDA the US corn stocks has shrunk to the 16-year low level in 2012. In Inter Continental Exchange (ICE) corn for March delivery traded at US$6.43 6/8 on March 8.