October 26, 2011

 

CNGOIC: China's corn imports to reach five million tonnes

 

 

China is expected to import five million tonnes of corn in 2011/2012 (Oct/Sep) as the country has increased imports after world corn prices tumbled, said the China National Grain and Oils Information Centre (CNGOIC).

 

China purchased 3-4 million tonnes of corn in the first half of this year as domestic supply has been tight, the official think tank said in a report.

 

Traders said that Sinograin, which manages the state grain reserves, had recently purchased 900,000 tonnes of corn from the US, and 600,000 tonnes from Argentina. 

 

The purchases came despite expectations of a record domestic harvest as China's demand growth has outpaced that of production and Beijing is building its low state reserves after benchmark US corn futures <Cc1> on the Chicago Board of Trade tumbled about 20% since late August. .

 

China imported 979,000 tonnes of corn in 2010/2011.

 

The centre also forecast that China, the world's largest wheat grower, would import 1.5 million tonnes of wheat in 2011/2012 (June/May) to take advantage of lower international wheat prices.

 

It said the port city of Shenzhen is expecting about 200,000 tonnes of imported wheat in October and November while a large number of wheat imports are seen for December and January.

 

Official customs data showed that China imported 176,951 tonnes of wheat in September, bringing total imports in the first nine months of the year to nearly one million tonnes. .

 

China has stepped up imports of wheat this year partly to meet rising demand from its animal feed industry. Local governments have also increased imports to rebuild reserves.