China has been a net corn exporter for years but the tide is beginning to change. China corn stocks are tightening, reports Mike Callahan, U.S. Grains Council senior director of international operations - Asia.
With the fastest growing economy in the world, China has experienced expanding demand for pork and dairy products as the population has gained purchasing power. The USGC office in Beijing is providing support to livestock producers, helping them improve production and efficiencies, and as a result, putting more of their products within the Chinese consumer's reach.
"The increased domestic demand has driven the price of Chinese corn higher, both domestically and throughout Asia," Callahan says. "Coupled with [Friday]'s report that China will issue no new export quotas beyond March 1, this is exceptionally good news for U.S. grain producers, who compete in those same international markets."
For the first time since 1999, U.S. corn export sales surpassed one million metric tons (39.3 million bushels) for five straight weeks on Feb. 12. With corn prices competitive in the world market and strong sales to Korea and South America, the sales pace may continue.