October 14, 2011
China's corn production this year is likely to lift 3.93% to a record 184.5 million tonnes, China National Grain and Oils Information Centre (CNGOIC) said Thursday (Oct 13).
The CNGOIC revised up its estimate for corn output by two million tonnes from its earlier forecast due to an expanded planting area and favourable weather in most parts of the country.
Expectations for a record corn harvest could help ease the country's food inflation. Corn prices have hit records recently, helping shore up domestic prices of meat and eggs to record highs.
The bumper harvest may be enough to meet robust demand mainly from the country's animal feed production, but may not be enough to meet overall demand as the government diverts some of the supply to replenish its state reserves, which have fallen far below comfortable levels, analysts said.
Beijing has increased corn imports this week to take advantage of global prices that have pulled back from record levels to help refill its depleted state reserves, traders said.
The centre revised down slightly its forecast for the country's 2011 soy output to 13.5 million tonnes, 10.5% lower than last year, as farmers shifted to grow more corn.