by PressCorn planted area in China has increased compared to last season
Corn planted area and consumption volumes: forecast for China
Analysts of CNGOIC presented a new forecast for corn consumption in the Chinese market. Compared to the last report, it was reduced by 2.1 million tons. It is expected that consumption in PRC will be about 279 million tons. In addition, the sown area of corn in the country will also be changed.
Experts made corrections to the forecast due to dynamics of reduction of demand on grain crops for fodder purposes. Analysts assume that the volume of corn used in this segment will amount to 182 million tons. Despite lowering the forecast, its indicators remain higher than observed in the previous season. At that time consumption was at the level of 275 million tons, of which 178 million tons were destined for feed.
The corn area planted is more than 43 million hectares, which is 0.2 million more than last season. The harvest is expected to be at the level of 275 million tons. Analysts also assume that corn consumption could reach more than 288 million tons, growth could also be observed in the fodder sector — up to 190 million tons. As for imports of culture, they will amount to about 18 million tons, which is 2 million tons less than previously recorded.
It should be noted that earlier China adopted a new strategy to reduce food dependence on the global market, and it has already given its results. At the same time, the authorities are concentrating more and more resources to improve food security. For example, the authorities passed a law to allocate about 1.5 billion dollars to support local grain producers. The funds will be paid in a lump sum and will help farmers cover some of the costs, which have increased due to the rising prices of fertilizers. Wheat producers will be the primary beneficiaries of the support.
As a result of the loss of one of its largest exporters, China is considering other options for buying agricultural products. The government has authorized shipments of Brazilian corn, which is a good alternative to imports from the United States. Imports of soybean meal and protein from Brazil are also under consideration.
Traditionally, China bought almost all of the corn it needed from the two exporters. However, due to the geopolitical conflict, the supply of one of the sellers was suspended. As a result, the government had to urgently look for new exporters in order to diversify the process.
So far, the Chinese authorities see Brazil as an optimal candidate. However, to get the grain from the country to the PRC, it must comply with a number of phytosanitary rules. Such processes may take about 3 months, after which supplies will be established.