December 22, 2003

China's Major Grain Crops, Except Soybean, Remain Oversupplied

Major grain crops except soybean will remain oversupplied in China for a period of time to come, said Shang Qiangmin, director of the National Cereals and Oils Information Center.

The decline in wheat output will not affect much due to falling consumption coupled with high inventories nationwide. Therefore, the supply will be sufficient in near future.

China is a net maize exporter and ranks second in the world in terms of export volume. However, as domestic demand keeps rising, China's maize export is decreasing gradually. Over 10 million tons of export a year is enough to regulate the supply and demand of China's maize market.