May 20, 2010

 

 

China is predicted to more than double up corn imports this year starting October 1 to cover a widening domestic supply shortage, reports local news.

 

Purchases may surge to 3.5 million tonnes because of tightening domestic supply and delays to planting caused by adverse weather, said Li Qiang, managing director of a research company. Imports in the current year will be 1.5 million tonnes, he said.

Li said that China's rising corn demand is being driven by growing consumption of meat, dairy and poultry. Demand "won't be affected" by government measures to cool the economy because overall living standards will rise regardless, he said.

 

"Corn consumption is also supported by surging production of starch and other chemicals based on the grain," Li said.

 

The corn harvest this year may rebound to 151 million tonnes from 136 million tonnes in 2009, while consumption is likely to rise to 157 million tonnes, he said.