January 9, 2007

China's CNGOIC forecasts for 2007 cereals production unchanged

The China National Grain and Oil Information Center reiterated its December forecast for major cereals production in 2007 in its January report.

Wheat production this year is expected to fall 3.4 percent to 99.5 million tonnes as a drought in northern China, including Hebei and Shanxi provinces, has resulted in smaller acreage of winter wheat, the CNGOIC said in a report released Monday.

It estimated that corn output this year would rise 2.1 percent to 145 million tonnes on rising acreage, as farmers are attracted by its high prices.

Soy production would see little change this year at 15.6 million tonnes, amid a slight decline of acreage.

The report said it would revise its estimates of major cereals production and acreage in April.

The CNGOIC is affiliated with the State Grain Administration, responsible for providing cereals market information for the policy makers.