November 28, 2007

China's grain to surpass 500 million tonnes in 2007

China's output of corn, soy, rice and wheat is predicted to reach 501.5 million tonnes in 2007, rising 4.05 million tonnes from last year, according to the National Grain & Oil Trade Center. 

However, China's 2007 consumer grain consumption is expected to decline by 500,000 tonnes from last year.

Grain demand for feed, on the other hand, will increase by 2 million tonnes. Industrial grain consumption will rise to 4.5 million tonnes.

The trade center also indicates the corn consumption to rise by 2.9 percent on an annual basis to 141.4 million tonnes due to higher demand from the corn processing industry.

Analysts say that corn output next year may decrease due to some government control policies. For 2007/2008, corn produce is expected to reach 147.5 million tonnes, while export volume is projected at 3 million tonnes.

Meanwhile, corn consumption for animal feed is expected to rise 2 million tonnes to 91.5 million tonnes due to the recovery of the livestock industry since May this year.

Soy consumption is also predicted to rise 2.25 million tonnes to 47 million tonnes in the 2007/2008 season. The crushing volume may increase by 2 million tonnes.

Domestic soy output is forecast to drop 6 percent to 15 million tonnes on-year. As a result, about 61 percent of domestic soybean demand will be met through imports.