China forecasts corn imports at decade low

02.15.17

According to Reuters, China’s recent forecast of a drop in corn imports to their lowest in at least a decade may end a years-long bonanza for global merchants and producers as maize prices in the world’s biggest grains market have dropped below global prices.

In its monthly crop report, the Ministry of Agriculture forecast imports for the 2016-17 crop year that ends in September as low as 800,000 tons, down 200,000 from last month’s estimate. That would be down from 3.2 million tons for the calendar year 2016 and a third of the average for the past decade.

Other estimates, however, point to higher imports for the year. The U.S. Department of Agriculture expects imports at 3 million tons and state think-tank National Grain and Oils Information Center estimates 2 million tons.

Still, the drop reflects the waning appetite for foreign grain after the government abandoned its long-standing price support program last year.

Such a large drop will likely spook global merchants and producers that enjoyed a prolonged boon in business as the world’s second-largest economy scooped up foreign crops to feed its growing urban population and livestock. (Source: Reuters)


Articles are chosen for summary in this Market Intelligence blog based on newsworthiness in conjunction with The Infinite Loop themes. Any opinions and views expressed in the articles are generally those of the underlying author from the source listed, are not necessarily current as of the date of this blog, may change as market or other conditions change, and may differ from views expressed by Ivy Investment Management Company and its associates or affiliates. Actual investments or investment decisions made by Ivy Investment Management Company and its affiliates will not necessarily reflect the views expressed in the articles. These articles are distributed for educational purposes only and are not investment advice or a recommendation to purchase, sell or hold any specific security mentioned in the article or to engage in any investment strategy. Investment decisions should always be made based on each investor’s specific financial needs, objectives, goals, time horizon and risk tolerance. Securities discussed may not be suitable for all investors.