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China’s corn planting area may rebound in 2019

On 10 August 2018, the Ministry of Agriculture and Rural Affairs of the People’s Republic of China (MOA) unveiled the agricultural produce supply and demand analysis made this month. It is expected that in 2018/19, the demand for corn will outweigh the production - the balance at the year of the period will reduce by 17.75 million tonnes. This means that the status quo where the corn supply outweighs the corn demand will be changed, and the corn planting area may be increased instead, due to the growths in corn price.


“In 2019, the domestic consumption of corn will reach 231 million tonnes,” predicted the MOA’s Committee of Experts on Market Warning, “This year [2018] will see a shortage in production and a fall of 17.75 million tonnes in the balance at the end of this year. The gap will be enlarged by 13.23 million tonnes compared to that in early 2018.”


In the past a few years, China has recorded excessively large inventory of corn. Hence, the Chinese administration has actively reduced the corn planting area. “In 2018, the agricultural supply side structural reform will continue, and the area for crop rotation will be increased by 1 million ha, of which the planting area for corn will be used for other crops,” said the National Grains and Oils Information Center.


The economic effect from corn planting is greater than that from other crop planting. In the regions where the policy for area reduction is not carried out, farmers are still actively growing corn.


This month in August 2018, Yuan Longping High-Tech Agriculture Co., Ltd. is on the way to acquire Beijing Lantron Seed Corporation. This is intended to expand its corn seed business. In addition, Hefei Fengle Seed Co., Ltd. attributed its decrease in loss in H1 2018 to the increased sales volume and sales of hybrid corn. 


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