Drought and insect damage in two corn-producing regions in China will likely cause the nation's corn crop to drop by 1-2 million metric tons (39.4-78.8 million bushels) this year from the 2005-06 crop total of 139.4 million tons (5.48 billion bushels).

Good conditions overall in northeast China, which is the area that typically grows more corn than they can use in the region.

However, lower yields that were seen in the North China Plain and throughout the rest of China will offset any gains that were made in the northeast.

Crop yields were about 4% to 5% ahead in northeast China, which produces up to 40% of China's total corn crop.

However, growers in the North China Plain region were hit by drought and insects – plus cotton plantings gained a little ground.

In the remaining corn-producing areas of China, one province suffered a severe drought that reduced the local production by 25%.

Feed demand in China is seen to be remaining strong despite some setbacks including avian influenza and a drop in hog prices.

Private tariff rate quota holders did import about 60,000 tons (2.36 million bushels) of U.S. corn in recent months.

High corn prices in China made U.S. corn attractive this summer, despite the 13% value-added tax (VAT) that is applied to corn imports.

Chinese buyers like U.S. corn. They like the quality and the consistency of the product. But it is a price relationship, when it comes to importing U.S. corn. If U.S. corn is more economical than Chinese corn, they may import.

Source:佚名