China is expected to produce a record 232 million tonnes of corn in 2015/16, up 7.6 percent on year, as farmers expand acreage due to Beijing's high price stockpile policy, according to a forecast by an official think-tank issued on Thursday. The estimated bumper harvest in the world's second largest corn consumer would put further pressure on Beijing to reduce its massive corn stocks and cap imports, said the China National Grain and Oils Information Centre (CNGOIC).
"Ample domestic supplies coupled with a big pressure of stocks will limit needs for imports," said the centre. China's corn imports in 2015/16 (October-September) is projected to fall 50 percent on year to 2 million tonnes, according to the CNGOIC forecast. Beijing has stockpiled more than 83 million tonnes of corn during 2014/15 scheme which ended last month, it said.
Government total corn inventories are now to more than 150 million tonnes, or about 84 percent of domestic consumption for the year estimated by the centre at 179 million tonnes. Beijing has increased sales of state reserves by offering 3.4 million tonnes of corn this week, up nine-fold from the previous week, and to support consumption the government has also agreed to subsidise corn processors. China's corn consumption growth in 2015/16 is likely to grow moderately or up 2.4 percent on year due to overall economic growth slowdown while cheap imports of corn substitutes, including sorghum and barley, would also hurt consumption of domestic corn, it said.
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