June 20, 2006

 

China's 2005/06 corn production larger than expected

 

 

China's National Bureau of Statistics (NBS) published 2005/06 corn production of a record 139.4 million tonnes, 5.4 million larger than the USDA May estimate, according to the USDA's Feed Outlook released Jun 13.

 

With increased corn supplies in China, USDA has reassessed demand for 2005/06.

 

Corn feed use in China was increased 2 million tonnes this month to 101 million, up 3 percent from the previous year, according to the USDA.

 

Significant increases were made for China's 2005/06 and 2006/07 corn production, use and stocks.

 

Increasingly in China, soymeal is supplementing corn feed to keep up with demand from the animal industry, the USDA said.

 

Corn food, seed, and industrial use were increased 2 million tonnes to 36 million tonnes, up 9 percent from the year before, according to the report.

 

China's 2005/06 corn exports were reduced 1 million tonnes to 4 million tonnes

 

Corn prices in China remain strong, and China has virtually halted additional corn export sales since February 2006 as no additional quotas for export subsidies have been made available.

 

China's 2005/06 corn imports increased slightly this month to 75,000 tonnes as a processor purchased a shipment of US corn, possibly to test government import procedures.

 

China's estimated corn ending stocks for 2005/06 were increased 2.4 million tonnes to 35 million, the USDA said.

 

USDA expects corn plantings in China for 2006/07 to increase from the previous year, with area expanding 0.6 million hectares to 27.0 million, increasing production to 138 million tonnes.

 

Feed use and industrial use were each increased 2 million tonnes.

 

This boosted use more than production, but with increased beginning stocks, 2006/07 ending stocks increased 1.4 million tonnes this month to 28.1 million tonnes.