China: Grain and Feed Update

Harvest is underway for spring/summer crops. The 2017/18 corn production forecast is raised on better yield, improved seed quality and favorable weather during the growing season. The PSD tables for feed grains (corn and sorghum) are updated for 2016/17 based on trade to date and for 2017/18 on expectations of greater consumption. There are minor updates for food grains (wheat and rice). Over the summer, there have been several announcements that could impact the grain sector, particularly for corn. The most recent announcement, the goal to adopt E10 usage in gasoline by 2020, if realized, could sharply boost corn consumption and reduce stocks. When combined with the ongoing reform, China could find itself tight in corn just in a few years.

China: Grain and Feed Update