China Limits Corn Imports as Domestic Production Accelerates

China is taking steps to limit corn imports as domestic production of this essential agricultural product increases. At the recent International Grains Conference, Li Shengjun, the director of China’s national grain and oils information center, indicated that the government aims to reduce reliance on corn from abroad.

Shengjun remarked, “Looking forward to the next ten years, China’s maize production and consumption will maintain rapid growth, with the rate of production outpacing consumption.” This year, the U.S. Department of Agriculture predicts that China’s corn production will reach 292 million metric tons, reflecting a 1.1% rise from 2023. Domestic demand is anticipated to rise to 313 million metric tons, a 2% increase compared to the previous year.

However, projections suggest that within a decade, China’s corn production will surpass domestic demand. Shengjun expressed confidence that the supply and demand for corn in the country will “reach a balance” in the coming years, thus reducing the necessity for imports.

The importance of food security is a priority for the Chinese government, as highlighted by Shengjun at the conference. A decrease in corn imports could influence commodity prices, given that China is the largest importer globally, bringing in 23 million metric tons annually. Approximately 70% of these imports come from Brazil.

In the past year, the price of corn has dropped by 14%, currently standing at $472.75 per metric ton.