Corn production in China to decrease, with impact to alcohol production costs and expected to use cassava as a cheaper raw material

Since China's National Day on October 1, 2020, corn prices have surged to over 2,600 yuan per tonne, marking the highest in four years and causing concern for animal husbandry industries due to the significant price increase from 2017. The rise in corn prices, China's most widely grown cereal, impacts various industries, including animal feed and corn-based products like starch and alcohol. The increase is primarily due to heightened demand and a forecasted decrease in corn production for the 2020/2021 season, despite expected production growth to 265 million tons. As a result, China may implement restrictions on corn usage in other industries. Meanwhile, Thailand, a major cassava exporter, is experiencing an uptick in cassava prices, potentially positioning it as a substitute for expensive corn, especially in China's corn alcohol market. However, Thailand's cassava exports have seen a slight decline in value in the first nine months of 2020, totaling 62,514 million baht, a 2.3% drop from the previous year.