April 15, 2008

Higher demand to make China a net corn importer

China, the world's second-biggest corn producer, may outpace its exports as it is seen to buy more of the grain due to burgeoning domestic demand, an official with the US Department of Agriculture said.

According to Gerald Bange, chairman of the World Agricultural Outlook Board, the agency responsible for the department's global grain supply and demand forecasts, China will become a net corn importer in the next four to five years with annual net imports reaching 2 million to 3 million tonnes tons in 10 years, given the current pattern of production and consumption.

In 2007, China imported 35,198 tons tonnes corn compared with exports of 4.9 million tonnes.

The country's corn imports may not grow to the same level as soy, Bange said, the USDA last week said China's soy imports may reach 34 million tonnes in the marketing year through Sept. 30.