Trusted Market and Commodities-Trade Intelligence
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.
On 5 Sept., 2016, the GM Seminar for National Media Reports was held in Changchun City, Jilin Province, on which Wan Jianmin, Academician of the Chinese Academy of Engineering and General Engineer of the Major and Special GM Project (the Project), introduced the progress of the project. He revealed that China might realize the industrial production of GM herbicide-resistant soybean and insect-resistant corn in the next five years.
Since the end
of July 2016, the third-generation armyworms stroke corn planting regions in
northern China. By 5 Aug., the national occurrence area of the pests reached 213,333.3
ha. Though the overall impact was less serious than that during 2012-2015, the
pests broke out in Shaanxi Province, Henan Province and Shanxi Province due to
improper field management, which lead to high pest volume in corn and rice
fields with many weeds.
July, 2016, the National Agro-Tech Extension and Service Center (NATESC) held a
Commerce Meeting for the Occurrence Trend of Major Diseases and Pests for
Agricultural Crops in China in H2 2016. On the meeting, it was predicted that
in the second half of 2016, the occurrence of corn diseases and pests will be
serious on the whole, with an accumulated area of 60.7 million ha (those of
pests and diseases are 38.6 million ha and 22.1 million ha respectively), which
is close to the average in the past five years. Moreover, late July-the end of
Aug. is the peak occurrence period.
On 2 Nov., 2015, the Ministry of Agriculture of China published the Guidance Opinions on Corn Structure Adjustment in the Liandaowan Region, according to which the planting area of corn in the Liandaowan Region shall be stabilized at 6.7 million ha in 2020, decreasing by 3.3 million ha over the present (corn output shall decline by 21 million tonnes); focus shall be laid on the development of forage corn, soybean, high-quality forage grass, coarse cereals and beans, spring wheat, economic forest and fruits as well as plants with ecological function.
In early Oct. 2015, the National Development and Reform Commission published the application conditions and allocation principles of China’s grain import quota in 2016, which are basically the same as last year. Specifically, the quotas for grain import in 2016 are: 9.6 million tonnes of wheat and non-state- run trade proportion is 10%; 7.2 million tonnes of corn and non-state-run trade proportion is 40%; 5.3 million tonnes of rice (2.7 million tonnes of long-grain rice and middle and short-grain rice respectively) and non-state- run trade proportion is 50%.
On 17 Sept., 2015, the National Development and Reform Commission, the State Administration of Grain (China Grain), the Ministry of Finance of China and the Agricultural Development Bank of China published a notice together about the purchase price of temporary reserve corn (third-grade in national standards) in 2015/2016, RMB2,000/t and the price difference between two neighboring grades will be RMB40/t. While the purchase price of temporary reserve corn in Inner Mongolia & Liaoning, Jilin and Heilongjiang in 2014/2015 were RMB2,260/t, RMB2,240/t and RMB2,220/t respectively. It is worth mentioning that the price in 2015/2016 is lower down for the first time since 2008.
On 29 July, 2015, the Biotechnology Research Institute, Chinese Academy of Agricultural Sciences (BRI, CAAS) held an exhibition regarding the R&D of genetically modified (GM) corn.
On 28 June, 2015, the Minister of the Ministry of Agriculture of China, Han Changfu, said that China plans to reduce its planting area of corn in 2016 and change the planting of corn into other crops as the government is confronted from large pressure from decreasing the large corn inventory.
According to the most update data from China Customs, in May 2015, China imported 404,000 tonnes of corn (not for seeds but for animal feeds), around 95% of which came from Ukraine. In the first five months of 2014, China only imported 243,000 tonnes of corn from Ukraine while the figure was 1.6 million tonnes during Jan.-May 2015, soaring by 5.4 times and accounting for 87.6% of the total imported volume in 2014.