China on pace for record corn imports, more possible

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China on pace for record corn imports, more possible

An American Farm Bureau Federation Economist says China is on pace to import a record amount of corn this year.

Shelby Myers tells Brownfield China has imported seven million metric tons of corn, just 200,000 metric tons shy of its current trade rate quota. Myers says China might need to adjust its trade rate quota which is normally reviewed and adjusted at the end of the marketing year.

“But this has also been a unique year for corn demand for them as far as the price of domestic corn for them is rising that haven’t experienced until recently,” she said.

She said with China’s tightening supplies because of flooding and rising demand as they rebuild their hog herd, domestic prices have jumped pushing China to continue importing corn.

“The domestic corn price in China is about 159 percent above the same-day price that it was in 2017,” Myers said.

She said China could import corn above the quota and if they do, they could be subject to pay 55 percent of the purchase price in import tariffs.

Myers said from 2011 to 2017, China had a substantial surplus of corn supplies compared to consumption but currently, they are experiencing a deficit of nearly 19 million metric tons.

Chinese new year is January 25^th.