Friday, July 13, 2012

Corn Imports From Asia on the Rise

As corn continues to get hammered in the breadbasket of America, where the Midwest continues to be hit by the worst drought in 25 years, the demand for corn in Asian countries is on the rise.

According to Rabobank International, global corn supplies could be strained as China especially may have to up its imports far beyond the 5 million metric tons it imported in 2011-2012. Their estimates are for China to boost corn imports to 8 million tons.

Food & Agriculture Organization, which is an arm of the United Nations, says the amount corn China will import for 2012-2013 will rise from 1 million tons to 6 million tons.

The USDA, which is thought to have understated China's corn demand, only has corn imports at the same 5 million ton levels it stood at last year.

Most of China's rising corn demand is coming from internal farming changes, where small home farms are being replaced by larger commercial farms. The commercial farms include approximately 50 to 55 percent of corn in its cattle feed mix.

Estimates for China are for it to produce about 197.5 million tons of corn for 2012-2013, up from last year's 191.75 million tons.

With diminishing corn yields in America, it's not certain where the corn supply will come from at this time.

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