China Raises 2020/21 Corn, Soybean Imports Outlook On Rising Demand

China’s agriculture ministry on Tuesday raised its forecasts for corn imports in 2020/21 year amid rising domestic prices and healthy demand from a steadily recovering pig herd. China was expected to import 10 million tonnes of corn in the 2020/21 marketing year, the ministry said, raising its forecast from 7 million tonnes the previous month, as the “price difference between domestic and international corn keeps enlarging”. Domestic corn prices hit record highs this week.

Corn consumption in feed was seen at 185 million tonnes, up 2 million tonnes from its previous forecast, as pig production recovery is better than expected, the Ministry of Agriculture and Rural Affairs said in its monthly report. Industrial demand for corn, however, was expected to fall to 82 million tonnes as soaring prices further squeeze margins for processing firms and cut operation rates at their plants, the ministry said. It lowered its forecasts for corn output in 2020/21 to 260.67 million tonnes from 264.71 million the previous month.

China was expected to import 98.1 million tonnes of soybeans in the 2020/21 marketing year, up from a previous forecast of 95.1 million tonnes, on rising demand to produce soymeal to feed the livestock sector.
Source: Reuters (Reporting by Hallie Gu and Dominique Patton; editing by Jason Neely)