by PressGrain imports continue to rise in China
China’s grain imports rise to record levels
Last year, China created a real stir in the grain market. Due to the sharp increase in demand among local consumers and the lack of stocks, an active import of grain into the country began. According to official statistics, the supply of corn and wheat to China in 2020 reached its maximum level.
This situation led to higher prices for the products on the world market. Prices soared to record levels, and China began to look for cheaper suppliers. Last year the country imported 11.3 million tons of corn, with 2.25 million tons imported in December alone.
In 2020, China bought almost twice as much corn as in the previous period. In addition, the country exceeded its annual import quota of 7.2 million tons for the first time.
As for wheat, shipments were also record high, reaching 8.38 million tons against a quota of 9.64 million tons. In 2019, corn imports took a share of 67% of the annual limits and 30%, and wheat was bought for only 30% of the designated limits.
China actively purchased grain from various suppliers as the pig sector’s need for animal feed increased dramatically. The fact is that after the African plague epidemic, the livestock began to recover quickly, and the industry was not ready for this. In addition, there was a deficit of grain reserves on the domestic market and an urgent need for imports.
According to experts, the same trend will continue until the end of this year. In China, corn prices are still high, so consumers are forced to buy products in other countries. It is already known that China has agreed to supply barley from Ukraine, Canada and France, and wheat from the USA.
For the last two months corn futures jumped by 40% and reached a record high. To cope with the situation, many livestock companies are buying up wheat as an alternative feed option for livestock.
The reason for the deficit on the domestic market was large-scale sales of products on the eve of the new harvest. However, the major typhoons that swept through the country destroyed crops and the country could not replenish reserves.
Analysts forecast that this year corn imports to China will be at the level of 30 million tons.
The global market rush is not good for inflation. In addition, suppliers are raising grain prices, which is reflected in the cost of production and related sectors of agriculture, such as meat and dairy.