China corn prices to remain firm amid Covid restrictions

Domestic corn prices in China are expected to stay strong in the near future, the Ministry of Agriculture and Rural Affairs (MARA) said on Friday.

Lockdown measures in northern and northeastern China triggered by the latest spike of Covid cases have severely disrupted the flow of corn across the country.

Corn stocks level at ports in the north is also very low at the moment, MARA added.

However, demand for corn in animal feed is estimated to be stable despite high prices.

“Wheat prices are high, and the substitution of corn in feed is limited. The proportion of corn in feed formula has increased,” MARA said in its latest China Agricultural Supply and Demand Estimates (Casde).

Total corn demand in 2021.22 marketing year is projected to remain at 287.7 million tons, unchanged from previous estimates. But the figure is up nearly 2% compared with the previous marketing year.

The forecast for corn imports flatlined at 20 million tons, unchanged from the previous month. However, it is still 6 million tons below USDA estimates.

Corn output expectation is also stable at 272.55 million tons.