August 6, 2012

Soaring US corn prices hit Chinese imports

China is experiencing more difficulty to use imports to help relieve its domestic corn shortage with the increasing prices of US corn, the director of the China National Grain & Oils Information Center declared on Tuesday (July 31).

Shang Qiangmin said China's 2012 and 2013 soy imports may rise to 60 million tonnes from 58 million tonnes a year ago, while the domestic harvest may fall to 13 million tonnes from 14.5 million tonnes.

Shang said the forecast is lower than others in the market because the government is selling domestic reserves, a measure that is likely to continue.