Bloomberg

China sees the need for more US corn to fill the domestic deficit

(Bloomberg) – Maize consumers after the United States do not have enough fodder in China and will have more purchases abroad. It produces everything from sweets to starch and alcohol. The government announced on Tuesday that it would sell more than one million tonnes of maize and export controls weekly, amid rising demand this year and in the coming years, as the country struggles with low-yielding farmland such as the United States. Has risen to its highest level in the last 26 years. The announcement of the latest sale coincides with a private meeting of senior US and Chinese ambassadors in Alaska this week, the first since President Joe Biden arrived in January. Meng Jinhui, chief analyst at Shengda Futures in Beijing, said more large purchases were possible soon due to strong demand from the refining and feed industries. Although fodder mills can use cheap government wheat or imported corn to replace corn, the only way for refineries is corn, where Chinese corn imports could eventually rise from 11 million tonnes to 40 million tonnes this calendar year, Meng said. Meng. The latest USDA estimate is that purchases will reach 24 million tons in fiscal year 2020-21, which is three times higher than the previous year, but this latest round of purchases will not be as aggressive as it was earlier this year when China booked Feng Licensing at www.yumi.com.cn. Nearly 6 million tons of U.S. corn per week as domestic prices fall behind records. According to data collected by Bloomberg, Chicago’s local corn premium rose in January to $ 200 a tonne. Maize is accumulating in the soybean space in the Northeast, and the question is how much planting will increase in response this year. More expensive. Wang Yanlong, who runs an agricultural cooperative in Heilongjiang province, the highest maize district, said he had purchased another 20 percent of the seed this year, hoping the yield would be expanded to 350 hectares by the time planting begins in May. He turned the entire area under soybeans into corn last year, hoping that several nearby government farms would do the same by reducing acreage of other crops such as watermelon and corn shortages, while corn shortages pushed Dalian’s futures contract to record highs in January. At 40% by 2020, Meng of Shengta said the northern parts of the country are expected to plant more maize in the expanded area of ​​wheat. After the June wheat harvest, corn will be planted in the north on the same land. Feng said the conversion of more farmland from grains, including maize, to other market crops will be politically motivated this year to ensure food security. Additional articles like this can be found at Bloomberg.com. The most reliable source of business news. © 2021 Bloomberg LP

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