November 3, 2009

China's grain output in 2009 is expected to increase slightly over the previous year, and in doing so achieve its sixth consecutive year of bumper harvest, according to a report by the Ministry of Agriculture.

The report said China's mid-season and late rice output would total 163.2 million tonnes this year, an on-year rise of 2.9 million tonnes, while wheat output would also top 123.3 million tonnes.

On the other hand, corn output would fall moderately to 160 million tonnes in 2009 and soy is projected to slide about four percent.

The report added that China's grain market is operating steadily due to the government's reserve policy and recovering demand.

Meanwhile, the report predicted that the prices of both rice and wheat may inch up in the coming weeks as the government continues its large scale stockpiling of grains.