China’s Corn Economy 02/09/2021

China’s big dive into the international corn market caught many traders and the USDA by surprise. China’s corn production in 2020 was about the same as a year earlier according to USDA data. China’s stock data is questionable but it does suggest a reduction in inventory. China’s decision to increase pork production is likely the major force driving coarse grain imports. China also has a large ethanol industry, but USDA has decreased domestic food/industrial usage for 2020/2021 so at least USDA analysts believe livestock feed is the more likely driving force. 

 Given that China has limited potential to expand coarse grain production. it seems possible China will continue to be a major coarse grain buyer similar to what has happened in the soybean market.