Corn import to the most populated country could reach up to 4 mln tonnes
It is almost a million tonnes more than China predicted last month.
The expected corn import, which increased in one third of originally planned volume, was affected by first phase of US-China trade deals. China cut import duties to some commodities imported from the U.S., and corn was one of these commodities.
Due to import tariff cuts, corn imported to Chinese markets will be even cheaper than locally produced corn. Chinese producers have already increased their corn orders from the U.S. in more than a million tonnes. According to the U.S. Department of Agriculture, part of these orders will only be carried out next year.
Corn import to China will be carried out, even though China predicts a year-on-year decline in corn demand in manufacturing industry. In March, Chinese companies have processed 2 million less corn than in February. However, if corn demand grows, the imported corn will push locally produced corn from the markets.