September 6, 2011
Chinese feed mills are expected to consume 17 million tonnes of wheat to produce animal feed this year compared with around 12.5 million tonnes last year, as wheat prices have become more attractive to those of corn.
Demand for wheat as animal feed will continue to rise if corn prices remain high, said Wang Xiaohui, director of the market forecasting department of the state-backed China National Grain & Oils Information Centre on Monday (Sep 5).
Profit margins for hog raising are at record levels, he said, adding that profit margins for hog raisers will likely return to normal levels - RMB100-200 (US$16-31) per hog - in 2012.
Meanwhile, China's 11 major wheat producing provinces have purchased a total of 46.31 million tonnes of wheat from 2011's crop as of August 25, the State Grain Bureau said.
State-owned grain enterprises bought 30.28 million tonnes of wheat, accounting for 65% of the total amount.