September 17, 2010

China's corn output may drop amid bad weather

Bad weather in some of China's corn-growing areas may eat into the country's total output this year, said an agricultural analyst.

A lower-than-expected corn crop from China could force the world's second-largest consumer to import more feed grain, further tightening the global market that has rallied to a 23-month high on disappointing early harvest data from top exporter US.

"For this year our current estimate is 158.7 million tonnes, but based on early crop tours in the main producing regions, it is not as good as estimated earlier," said Jenny Chen of Shanghai JC Intelligence (JCI).

The China National Grain and Oils Information Centre has raised its forecast for corn harvest this year to a record 169 million tonnes, up one million tonne from its August estimate.

JCI said earlier this month that the nation will need to import up to five million tonnes of corn next year to replenish its stockpiles, a majority of which has been sold in the market.

"Based on the official estimates, the stocks may be around 35 to 40 million tonnes. China's corn consumption is around 150 to 160 million tones, so it should have at least 50 million tonnes," Chen added.