April 28, 2008

China corn supply down on low carry-in stock

China's 2007-08 corn production has decreased marginally while supply also dropped slightly due to low carry-in stocks, the Agriculture and Agri-Food Canada (AAFC) said.

Corn exports of China are projected at 0.5 million tonnes, the lowest level in recent history, due to restrictive export policies in the face of surging feed and food use of the domestic market, AAFC noted.

Local consumption was pegged at a record 148 million tonnes, of which 105 million tonnes would be for feed.

Carry out stocks are seen to decrease slightly.

China is expected to become a net importer of corn over the medium term, as domestic consumption continues to grow and exports decline due to policies that have recently been implemented to restrict exports, the AAFC said.