China: Grain and Feed Update
The massive surge in imports of cheaper alternative feed ingredients has significantly impacted feed demand for corn in recent years according to official statistics and industry analysts. Post has therefore sharply reduced corn “feed and residual” use for MY 2013/14 through 2015/16. Combined with another record corn crop, post forecasts MY2015/16 ending stocks will reach 117 million tons. The government’s recent 10 percent cut in the corn support price should spur domestic corn consumption and reduce demand for imported alternative feed ingredients, such as sorghum. MY2015/16 corn and wheat production are still forecast at a record 225 million tons and 130 million tons respectively. Even after the price cut, domestic corn, wheat and rice prices remain far above international prices.
