BEIJING, Aug 9 (Reuters) – China’s corn supply is expected to remain tight in the coming crop year that starts from October, although output this year is on track to rise from 2009 because of acreage increases, industry participants said on Tuesday.
Recent floods in northeast Jilin province, a major corn producer, were unlikely to have a very negative impact on production as little corn was planted in affected areas, they added.
“The recovery in feedmeal demand and year-end holiday consumption will help to keep prices at high levels despite a possible output increase,” said an analyst with Chicorn Network.
“Chinese users from the feedmeal sector are keen to buy more U.S. corn because of strong demand,” said a corn manager with Cofco’s corn unit.
Chinese importers have booked 1.25 million tonnes of corn from the U.S. so far this year on an output fall last year and a rise in consumption, the largest volume in a decade.
Besides feedmeal demand, government reserve houses were likely to buy a large volume of the crop after the coming harvest to refill dwindling stocks, said analysts.
The government sold a total of 1.04 million tonnes of corn on Thursday during its weekly auction, 66 percent of the 1.58 million tonnes it offered for sale.
Analysts expect corn output in 2010 to rise by more than 10 million tonnes from last year. (Reporting by Zheng Xiaolu and Tom Miles; Editing by Chris Lewis)
2010-08-10 12:20:00