Corn imports into China are projected to fall in marketing year (MY) 2021/22 to 20mt from 30mt in MY 2020/21.
Lower domestic corn prices and the release of corn from reserves are driving buyers away from imports, said the USDA. “Chinese buyers may withdraw from significant future purchases from the US as the domestic harvest is approaching, feed demand is weakening, local prices have slumped, and ports are congested. With current US corn prices, China may turn to Ukraine for MY 2021/22 imports.”
Weakening feed demand is especially notable in the swine sector, where the USDA expected a drop of 5% in MY 2021/22. Weak domestic prices and disease pressures have led to reduced hog production.
There is however a slight uptick of 2% in broiler feed demand as chicken replaces pork in menus.