China’s falling corn imports show hit to consumer confidence

Published Dec 11, 2024

Tridge summary

The US Department of Agriculture (USDA) has reduced its forecast for China's corn imports for the 2024-2025 season to 14 million tonnes, down from 16 million tonnes, due to lower purchases from Brazil. This decrease reflects China's economic slowdown and property crisis, which has led to reduced meat consumption and restaurant outings, both of which require large amounts of corn as animal feed. Additionally, Beijing has asked traders to purchase less foreign grain to protect local farmers and support domestic prices. The USDA also expects China's corn crop to reach a record high this season, further reducing the need for imports.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

(Dec 11): China’s corn imports are expected to total just 14 million tonnes in the current season, less than half of their peak during a buying spree a few years ago, according to the US Department of Agriculture (USDA). The agency trimmed its estimate by two million tonnes for the 2024-2025 year through September in a report released on Tuesday, citing lower purchases from Brazil. It offers fresh evidence of how China’s economic slowdown and property crisis has battered consumer confidence. Corn is mainly used as animal feed in the country, and demand growth has suffered as cost-conscious households cut back on meat and restaurant outings. Beijing asked traders to buy less foreign grain earlier this year, part of an effort to shield local farmers and support domestic prices, which are near the lowest in more than four years. The USDA is also forecasting China’s corn crop to be at a record high this season, despite extreme weather, curbing the need for imports. China, which ...

Source: Theedgemarkets