October 14, 2010

China's new corn acres raise bumper crop hope

China has maintained assertions that it is in line for a record corn crop, after finding an extra 13,000 square kilometres in planting area.

The China National Grain and Oils Information Centre (CNGOIC) has kept its estimate for the corn harvest at 169 million tonnes.

The forecast, ahead of 2008's all-time high of 165.9 million tonnes, came despite a cooler spell in the north over the last couple of weeks, with wet weather in the south also delaying harvesting.

However, the CNGOIC raised its estimate for corn area by 1.3 million hectares to 31.9 million hectares, putting it well ahead of last year's.

The extra sowings could help narrow the gap between the bureau's own estimates and those of other observers, which have remained stubbornly lower.

"This is surprising given the US Grains Council reduced its production estimate to 158 million tonnes following a recent crop tour in China," analysts said.

The USDA left its estimate for this year's Chinese production at 166 million tonnes in a monthly round of data revisions.

Meanwhile, the CNGOIC also raised its estimate for corn sowings by 500,000 hectares.

The total plantings of major row crops this year covered 101.5 million acres, up three million acres in two years, despite the constraints posed by land loss to deserts and urbanisation.