March 18, 2008

China 08 soy acreage to rise; corn acreage to fall

China's soy acreage in the major producing regions is likely to increase significantly in 2008, while corn acreage may fall as a result, local media said Tuesday, citing National Bureau of Statistics data.

Soy acreage in Heilongjiang province may rise 19.3 percent on year to 4.69 million hectares and 17.1 percent on-year to 521,013 hectares in Jilin province, said Liaoning Daily in a report published on the Dalian Commodity Exchange's Web site Tuesday (March 18, 2008).

Meanwhile, corn acreage in Heilongjiang province may fall 13.3 percent on year to 3.5 million hectares and move up slightly by 0.2 percent on year to 2.86 million hectares in Jilin province, the report said, citing the statistics bureau's most recent survey.

The surge in soy prices since the second half of last year has prompted farmers to grow more soy instead of corn.

Meanwhile, Premier Wen Jiabao Tuesday assured the nation that China has sufficient reserves to bring grain prices under control.

China's grain reserves are between 150 million to 200 million tonnes, he told a press conference, adding that the government is "very confident" it can control spiraling grain prices. 

Surging food prices were the main culprit that pushed domestic consumer price index growth to a near 12-year high of 8.7 percent in February.