A string of larger crops in China has helped relieve tightness in the grain market and ease the sharp drawdown in stocks. For wheat, production is now estimated at a 7-year high, as area has expanded and growing conditions have been exceptional. With domestic demand continuing to stagnate, the bumper crop is even expected to result in a buildup in stocks. Ample supplies are also expected to reduce the need for imports--which are expected to be down by nearly half--and allow for greater exports to nearby markets. For rice, production has rebounded due to a recovery in area and good weather. Meanwhile, use has been falling as less rice is included in feed rations. As a result, in 2006/07, production is expected to exceed use for the first time in 7 years, halting the decline in stocks. For corn, despite record crops in recent years the situation remains tight as consumption continues to outstrip production. The shifting of dietary habits toward greater meat consumption has increased corn demand for animal feeding, while industrial use has also expanded. As a result, stocks are expected to continue to shrink and exports are expected to remain at relatively low levels, i.e., down 75 percent from 5 years ago.