August 14, 2007

China's corn market bleak amidst rising supply and reduced feed demand
 

China's corn market is likely to remain lacklustre as rising corn supplies comes at a time of reduced feed supply for this year.

China's corn supply is expected to rise by 4.4 percent in the 2006/07 crop year, higher than last year's growth of 2.6 percent, according to the International Trade and Economic Cooperation Institute under the Ministry of Commerce.

However, at the same time, feed demand for corn is widely expected to drop during the period. This would mean bleaker prospects for the corn market for the year ahead due to increased inventory, the National Grain and Oil Information Centre said.

Demand for live pigs and soyoil would continue to remain strong for the rest of the year, the centre said.

The centre is optimistic on the pork production industry given the shortage in pork currently and the subsequent high prices.