September 28, 2004

China's Corn Output Seen Higher 

China is expected to harvest a corn crop of about 120-122 million metric tons this year, much larger than last year, according to Dr. Todd Meyer, Beijing office director for the U.S. Grains Council.

"This is not an excellent crop, but a decent crop," Meyer said. Last year, China's farmers produced only 115.8 million metric tons of corn.

Planted area in China was expected to be 24 million hectares (59.3 million acres) less than last year (a 10% drop), Meyer said. But yields are up by 5% over last year, and China's corn production future lies in higher yields.

"Corn yield is where their (China's) potential is for the future, yields are above world average," Meyer said. "Yields are high compared to other smaller countries but still have a way to go to reach U.S. yields. There are some issues with water. A lot of the crop is double-cropped with wheat."

Traders expect China's exports and imports to be equal during the 2004/2005 marketing year.

"China has seen 3-4 months of less exports; a much higher level is needed to reach last year's levels," Meyer said. That means more corn on the domestic market, but much of that amount is being snapped up by hog feeders.