September 22, 2010

Minimal frost impact on China's corn, soy output

Early frost in China's grain-producing areas will not affect output of soy or corn, the state-backed China National Grain and Oils Information Centre said Tuesday (Sep 21).

China's grain harvest is closely watched, as it affects global grain flows, the level of state grain reserves and the government's goal of 95% grain self-sufficiency.

"A third of this year's soy harvest has already been collected, and all of it is already mature, so even if there's frost, it won't affect the harvest," a researcher with the semi-official think tank said.

The frost is not expected to heavily affect corn production, he said, adding that this year's output projections for corn were the "best in five years."

China's soy crop is expected to be entirely harvested by the end of September, he said, adding that this was a slightly earlier harvest than normal. The harvest is usually completed by mid-October.

Corn is slightly more vulnerable as its harvest season extends into November. However, analysts project the upcoming corn harvest to rise about 5% on-year to 165 million tonnes.

Last week, the centre maintained its forecast for the soy harvest at 14.8 million tonnes, down 1.3% from last year's 15 million tonnes.