[China Agricultural Machinery Industry News] China is expected to reduce its corn planting area by more than 1 million hectares this year, which will be a decline in 13 years. The global grain market is preparing to cope with the impact of China's large-scale agricultural reform in the past decade. How to deal with these corn stocks has become the focus of the market, and China's policy adjustments have caused overseas markets to worry that China may export surplus corn. The status of a large agricultural country highlights the problem of corn “destocking†into a global focus
China's corn stocks are close to 250 million tons, enough to fill 34 nests, and how to deal with these corn stocks has become the focus of the market. China’s policy adjustments have caused overseas markets to worry that China may export surplus corn.
A Singapore trader said that we believe China's export of corn is highly likely because domestic corn prices may fall to international levels.
Some Chinese analysts are concerned that domestic corn production cuts may eventually lead to an increase in China's dependence on imported corn.
An official from the Chinese Ministry of Agriculture said that it is impossible for corn to take the old road of soybeans - more than 80% of China's soybean demand depends on imports, and domestic corn supply security is still a priority.
The official said that in the past 12 years, China's corn production has increased by more than 108 million tons, and China will continue to implement the 7.2 million tons of corn tariff rate quota (TRQ).
Recent forecasts released by the Ministry of Agriculture show that China's corn production in 2016 may be 215.17 million tons, a decrease of 4.2% from the previous year. The Ministry of Agriculture said that corn production may be affected by bad weather in the northeast and floods in the south.
By 2020, China's corn production may fall further to 20,567 million tons, and consumption is expected to be 22,192 million tons. However, this gap between supply and demand can be met by digging stocks rather than through imports.
(Original title: How to deal with China's huge corn stocks has become the focus of global attention)
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