March 19, 2009
China's March corn consumption seen down
According to the USDA forecast, China's projected domestic corn consumption decreased by 6 million tonnes this month to 152 million tonnes.
As the demand for feed remains weak in the poultry industry, the use of corn for feed and residual purposes is down by one million tonnes to 110 million tonnes.
Meanwhile, rising unemployment rate is also expected to limit meat demand. Thus, the projected food, seed, and industrial use of corn in China decreased by 5 million tonnes to 42 million tonnes.
China's corn prices are relatively higher compared to the rest of the world due to the government's procurement efforts to support prices for farmers.
