China corn imports to fall as farmers dump other crops to cash in on bumper profits
- China’s maize output in 2021/22 is set to rise by at least 6 per cent after farmers expanded corn planting this year
- The likes of the United States and Ukraine have benefited from China’s corn import binge as the world’s largest grain producer turned into the top corn buyer
Chinese farmers have sharply increased corn planting this year to cash in on demand-fuelled record prices, a trend that is likely to cool the country’s recent rampant appetite for imports heading into 2022.
The expansion, which comes mainly at the expense of soybeans and other crops including sorghum and edible beans, will boost China’s maize output in 2021/22 by at least 6 per cent, according to market participants.
I’m going to grow corn on all my land this year. No more other stuff
“I’m going to grow corn on all my land this year. No more other stuff,” said Li, a farmer in the northern Hebei province who last year grew millet on around one third of the 20 hectares (49 acres) of land he manages.
“Corn prices jumped so high last year. Profits will be good,” said Li, who declined to give his full name.
Consistent and accurate data on China’s crop footprints is hard to come by, especially following the unexplained suspension of Beijing-based agriculture information provider Cofeed. The private consultancy, which many in the market regarded as the most comprehensive supplier of information on grains and oilseeds in China, ceased updating data in April.
With Cofeed offline, and other consultancies reluctant to diverge their crop views too far from government estimates that are often considered conservative, market participants have become increasingly reliant on anecdotal evidence for nearer-term readings on acreage shifts.