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Expected declines in Chinese imports

A report from CoBank says China’s economy is not to blame for expected declines in ag imports in 2015 and 2016.

CoBank, a cooperative lender that’s part of the Farm Credit System, says the significant decline Chinese imports is being caused by multi-year highs of supplies in corn, wheat, cotton, milk powder and soybeans. China is the world’s largest importer of several commodities.

The report says despite China’s economic decline, urban disposable incomes are increasing at a 10 percent year-over-year pace. Urban households also spent four percent more on food in 2015 than last year.

USDA projects China will import 46 percent less corn, 34 percent less cotton and 35 percent less milk powder during the current marketing year.