December 17, 2010

China revises up 2010 corn output

China's corn output in 2010 was estimated at a record 172.5 million tonnes, a 5.2% increase over last year, the latest estimate by the China National Grain and Oils Information Centre (CNGOIC) showed.

The higher output would leave China, the world's second-largest consumer, with a surplus of 7.5 million tonnes next year based on a estimated median consumption figure, which could mean that China may not import large volumes of corn from abroad.

Still the surplus may not be enough given that state reserves are at a very low level after more than 44 million tonnes have been sold to the market since last year.

CNGOIC also revised upward the 2010 estimated soy output to 15.2 million tonnes, up 1.5% from last year. Despite the rise, China, the world's largest soy importer, will continue to import the oilseed next year to meet its big deficit in edible oils and animal protein supplies.

China's soy imports in 2010-11 are likely to rise to about 57 million tonnes, up from this year's 50 million tonnes, according to estimate by the USDA.

The centre's revision comes after the National Bureau of Statistics earlier this month initially put the country's grain harvest at a record 546.41 million tonnes, the seventh year in a row it will have a bumper harvest.

Meanwhile, China's wheat output is projected to keep unchanged and rapeseed to see a decline, according to the CNGOIC.