China grain market to keep tight balance in 2009
China expects to see excess supply of wheat and corn, balance in rice, but short soy stocks this year, said Zeng Liying, deputy director of the State Administration of Grain.
Zeng noted a recent survey showing China's wheat and early rice acreage will continue to increase in 2009 as the drought in early year had minor impact on wheat growth. What's more, the higher level of state reserves will make grain supply surpass the demand, Zeng added.
China's oilseeds output is expected to keep growing this year, but is still hard to meet demand on the domestic edible oil market.
An analysis reveals that large increase of grain output and reserves in 2008 but faltered demand from breeding industry will make joint efforts to drag down the prices this year. However, the country's minimum grain price and interim reserve policies will meanwhile serve to shore up grain prices.