USGC projects a strong China crop

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

The U.S. Grains Council (USGC) 2012 China Corn Harvest Tour projects another good Chinese corn crop, driven both by higher yields and an increase in planted acreage. Persistent reports of weather and pest problems in some areas this summer, plus recent typhoon impacts in northeastern China, had raised concern about potentially significant yield reductions. The Council's survey, however, suggests that the impact of these events is relatively small. While the final harvest will fall short of best-case expectations, it will be another record year for China corn.

"The U.S. drought and short 2012 crop is pressuring buyers in all sectors," said USGC President and CEO Tom Sleight. "But corn trades in a global system, and the safety net is the capacity of other producers to step up. 

"The United States is by far the world's largest corn producer and exporter, but in a tough year for U.S. corn, it is a relief that the world's number two producer is having a good year. That will help limit demand destruction and preserve markets for U.S. corn as we rebound next year."

China is the world's second largest corn producer and until 2010 was an export competitor of the United States in Asian markets. In 2010, however, China became a structural corn importer, and last year purchased nearly 5.2 million metric tons (205 million bushels) of corn from the United States, making it the third largest U.S. export market.

"Continued growth in China's economy and individual income growth will continue to drive increases in meat consumption and animal feed demand," said Bryan Lohmar, the USGC director in China. "But a good harvest this year, plus the forward purchases they have already done for the 2012/13 marketing year, gives China some breathing room in a very tight global market. China will likely be strategic in its purchases this year, entering the market to build reserves if and when prices dip."

The USGC Harvest Tour is comprised of teams of industry experts who visited China's seven top corn production provinces in the North China Plain and Northeast China. These account for over 70 percent of China's corn production. In addition to crop conditions, the Council's teams observed increased corn acreage, which has increased in China at the expense of cotton and soybean acreage. While some insect and weather damage was apparent, the overall crop looks good, and is expected to again set a Chinese production record.

The 2012 Tour was conducted from September 10-28, 2012, and included representatives from major grain traders, the Chinese feed industry, U.S. and Chinese market analysts, U.S. corn producers, the U.S. embassy, and USGC staff.


Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...


Comments (0) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left


Portable Conveyors

Convey-all portable conveyors are designed to handle your crops gently and efficiently. We offer an extensive line of high capacity ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form