August 25, 2006

China's corn supplies abundant despite rapid increase in consumption

Corn consumption in China is surging, but supplies are likely to remain abundant through next year, Wang Ziming, former secretary-general of the China Grain Business Association, said Tuesday (Aug 22).

Wang predicted that corn output in 2006 would reach 142 million tonnes while total demand would not exceed 135 million tonnes. This is taking into account a 30 percent increase in the industrial use of corn he told a symposium in Beijing

Corn price have been climbing in the first half of the year, rising almost 20 percent in Jilin, a major corn producer in northeast China.

Wang said stronger prices for sugar and higher demand for alcohol, both of which are processed from corn, are largely responsible for the price increase.