China Could Cut U.S. Corn Imports Due to Higher Prices

By CnAgri2012-07-25 19:16:49 Print

China, the world's second-biggest corn user, may import fewer shipments from the U.S. than forecast due to rising costs since the worst drought in decades hit the top grower, a state-owned researcher in the Asian country said. According to Bloomberg News, imports in the year beginning Oct. 1 may total 3 million metric tons, compared with 5 million tons projected by the U.S. Department of Agriculture, the China National Grain & Oils Information Center said. The center forecast shipments of 6 million tons on July 11.

Imports from top exporter U.S., based on the Chicago Board of Trade benchmark, to be shipped early next year will cost about 3,000 yuan ($470) per ton on arriving at Chinese ports after all costs, according to the center. That's about 450 yuan more than the domestic price, 'creating barriers for imports,' according to the report.

Without the imports, there's increasing pressure for the domestic harvest to gain to make up for the projected shortfall, and feed wheat consumption may rise, the grain center said in the report.

Chinese imports may rise to 8 million tons in 2012-13, Rabobank analyst Jean Yves Chow said July 12. Shipments in the year ending Sept. 30, may be 5 million tons, according to USDA.