Focus: 2019/20 Corn Output Would be 250 Million MT, and a Net Gap Between Production and Demand Would be 37 Million MT

In July, the overall hydrothermal condition in most areas of the north, and north China and Huang-Huai Region was relatively good, the temperature was relatively high and soil moisture was suitable, which are good for corn growth. It was predicted that the average yield of corn was down 1% from last year. However, the subsidies to soybean producers are obviously higher than those to corn producers, and it was dry in west Heilongjiang and northeast Inner Mongolia this spring, resulting in a delay of corn sowing and further promoting farmers to grow other crops. The decline in corn planting areas in some areas of northeast was obvious, of which the decline in Heilongjiang ranged between 7-8%. It was predicted 2019 corn planting areas would decrease by 2%. So, 2019 corn output was predicted to be 250 million MT, down 3.0% or 7 million MT from last year.   
 
The total consumption of corn would ascend to 287 million MT in 2019/20. Of which, high profits of livestock farming would push up hog and poultry farming margins, and the consumption of corn for feed was predicted to be 185 million MT, 5 million MT higher than 2018/18; corn further processing capacity in 2019/20 was predicted to increase by more 20 million MT, and the consumption of corn for further processing would increase to 85 million MT, 10 million MT higher than 2018/19.
 
It was predicted that the net gap between production and demand of corn in 2019/20 would reach 37 million MT, which would cut down ending stocks.