April 6, 2011

 

China's appetite for soy, corn in 2011 seen bullish 

Chinese import demand for feed grains, particularly soy and corn, is expected to stay strong this year, according to investment bank JP Morgan.

 

Demand for feed grains in China was rising as more people are switching to a protein-rich diet, said Jing Ulrich, the managing director for Global Markets - China.

 

Chinese soy import demand could rise 20% on-year in 2011, she said. Last year, China imported 55 million tonnes of soy, compared with just about five million tonnes in 1999.

 

Corn imports could hit five million tonnes this year, up from 1-2 million tonnes last year, according to Ulrich. "Between the two, corn has better potential for price growth,"she said, adding that higher oil prices will make corn more expensive due to its use in the production of ethanol.