China's 2016 corn output to fall as stockpiling ends

China's corn production in 2016 is expected to decline 2.9 percent from last year to 218 million tonnes, as farmers in the north-east are expected to switch crops, a state-backed think tank said on Monday. China decided in March to end a corn stockpiling programme that supported domestic prices for farmers and at the same time spurred imports of cheaper substitutes like sorghum and distillers' grains.
The China National Grain and Oils Information Center (CNGOIC) said it expected the policy change to bring output down by 6.58 million tonnes this year, with demand already weakening. The CNGOIC said feed demand had slowed, and was expected to drop 10.4 percent to 110.4 million tonnes over the 2015-16 marketing year. Overall corn consumption was expected to reach 185.54 million tonnes over the period, leaving a surplus of 41.85 million tonnes.