China plans to reduce import of feed grains
After the Chinese government increased the sales volumes of corn from the state reserve , the domestic price of feed grain decreased. As a consequence, the import of fodder in the country will be reduced.
since may 27 at auctions were sold almost 13 million tons of corn from state reserves, which led to the fall of the futures on corn to the lowest in the last ten years.
next season, which will begin in October, imports of maize could be reduced by 69%, predicts the national information center of grain and oil crops of China (CNGOIC). Significantly reduced purchase of other forage crops, particularly barley and sorghum.
Experts point out that the import of substitutes for corn became very unprofitable. Futures fell nije prices for imported barley and sorghum. The cost of the January agreement on corn Commodity exchange, the Dalian August 2, dropped to 1438 yuan/ton, the lowest reading since October 2006. The value of the U.S. sorghum for delivery to China and the sales tax is 1689 yuan/ton, the Australian barley – 1545 yuan/ton.
compared with last year in June, imports of sorghum decreased by 45%, barley – by 51%, corn - by 92%.
In 2016, the government will sell almost 40 million tons of corn, 20 million tons through direct sales, predicts Feng Lichen. While stocks kukurudzi in the state reserves make up 230 million tons.
the Government has accumulated large reserves, kukouri after I started to buy farmers ' maize at above-market prices. Earlier this year, it was announced about the change of the form of support for farmers from high input prices other ways. After that, the appeal of kukurudzi for farmers decreased sowing area under it declined for the first time in the last ten years. However, the corn harvest will again exceed the annual consumption.