July 2, 2007

China 2007/08 corn output seen up 2 percent at 146 million tonnes
 

China's corn output will rise 2 percent from a year earlier to 146 million tonnes in 2007/08 on growing demand and higher prices, said an official from the US Department of Agriculture Monday (Jul 2).

China's corn consumption is expected to rise by 3 percent on-year during the same period, due to an increase in industrial demand, said Gerald Bange, the USDA's World Agricultural Outlook Board chairman.

However, growth in demand from the feed milling sector will slow down slightly, Bange said at the two-day China Grains, Oilseed, and Vegetable Oil Market Outlook conference in Beijing.

The USDA expects China to become a net corn importer within the next five years on rising demand and declining stocks.

China's corn stocks have fallen rapidly in the past two years on stable exports, he said.

Meanwhile, the China National Grain and Oils Information Centre Monday (Jul 2) raised its 2007 corn output forecast to 149 million tonnes, up from an earlier forecast of 147 million tonnes.

The semi-official think tank said it expects soybean output to reach 15 million tonnes, while wheat output is expected to reach 107 million tonnes. It forecast rapeseed output at 12 million tonnes.

The agency did not provide further details of the forecast.