September 15, 2010

China may up corn output by 7.6%

China, the world's second-biggest corn grower, may increase its production by 7.6% this year, limiting potential imports, according to analysts.

Abundant rain, sun and warmth will probably boost output to 156 million tonnes, analysts said. A crop that size may keep foreign purchases to 3 million tonnes in the coming year; while imports may be as much as 5 million tonnes.

China bought about 1.3 million tonnes of US corn in 2009- 2010, the most in 14 years, and sold 13.7 million tonnes from state stockpiles in the north of the country to cool domestic prices that advanced 17% in the past year. Imports may be more than 3 million tonnes should the government replenish its inventories, analysts said.

While the government does not view corn as a core staple like wheat and rice, it will not necessarily loosen controls, analysts said.

Meanwhile, Shanghai JC Intelligence is keeping its prediction of 158 million tonnes of production even as frost in Heilongjiang may have affected some crops.