August 31, 2006

Strong domestic demand seen for China's corn in 2006

According to China's National Oil and Grains Information Centre, China's corn prices are expected to make more gains as domestic demand is seen strong for the second half of the year.

China's domestic corn demand in 2006 is forecast to reach a record high of 141.5 million tonnes, 3.5 percent more than the previous year. This is mainly due to strong industrial demand for corn, which is expected to hit 30 million tonnes, higher than the 26.3-million tonnes for 2005. Corn used in feed production is projected at 92 million tonnes, 3 million tonnes more than that used a year ago.

As for corn production, analysts expect output to climb to 142 million tonnes in 2006.