Subsidies incentivizing China’s farmers to plant more soybeans than corn
Maize (Corn)
China
Published Oct 8, 2022
Tridge summary
There is a forecast decline in corn production in China with a USDA FAS report citing reduced planting area and yield losses caused by excessive rains in the northeast as factoring into the reduction.
Original content
Grain grower subsidies for soybeans were also nine times higher than that for corn, thereby incentivizing farmers to plant more soybeans, reads the latest USDA FAS feed and grain outlook for China. The authors expect corn production for MY2022/23 to reach 270Mt, 2.5Mt lower than MY2021/22, and 4Mt tons lower than USDA’s official forecast. The estimate for corn imports in the report is 18Mt, the same as USDA's official estimate. The publication noted that Brazil will be eligible to ship corn to China before the end of the calendar year, earlier than previously rumored, following the signing of a phytosanitary protocol. With rising international grain prices and the arrival of new crop on the market, local corn use in feed is expected to grow. Demand for that crop from the local livestock sector is set to increase owing to better profit and lower wheat use in feed, according to the outlook. “September average Chinese corn farm prices increased by US$36 to US$396 per metric ton ...
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