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USDA FAS sees corn imports by China at 22 million tons

The USDA’s Foreign Ag Service is expecting strong corn demand from China to continue.

The FAS Beijing office now projects corn imports by China at 22 million tons, compared to the current official USDA guess of 7 million, with the increase tied to a tight domestic supply, rising prices, and solid demand as China rebuilds and expands its swine and poultry production.

That would require China to raise their 2020 tariff rate quota on corn from 7.2 million tons, which has been passed, and while there is talk that number has already been raised by 5 million tons, nothing has been confirmed.

China has liquidated most of their domestic corn supply to ease those rising prices and producers in China are also drawing on temporary wheat and rice reserves and even imported feed wheat.

The USDA’s next set of supply and demand estimates is out November 10th.