US may replace Ukraine as China’s top source of corn

The US will likely surpass Ukraine as China’s top source of corn this year for the first time since 2015, as China’s corn imports from the US continue to grow amid increasing demand, soaring prices and the China- US phase one trade agreement, experts said on Sunday.

Since March 2020, corn prices have soared, peaking at 2,900 yuan ($ 442) per ton. There have been some fluctuations since March, and the price was just 2,730 yuan in early April, but it rose again by 150 yuan per ton in the past week and maintained at a historical high level, industry data showed.

Corn prices are setting records on the purchasing, futures and wholesale fronts, which reflects changes in supply and demand, Xi Yinsheng, an analyst with the Ministry of Agriculture and Rural Affairs, told the Global Times on Sunday.

In recent years, China’s stockpiles have been rapidly depleted, while the gap in producing areas is also large, experts said.

“Coupled with the impact of COVID- 19, crop prices are surging, and corn prices are rising more than many other crops because of the larger gap in the supply and demand for domestic corn,” Xi said.

Booming demand in China further boosted imports. Data from the research institute ASKCI showed that from January to February, China’s corn imports stood at 4.8 million tons.

Experts said that corn imports may even exceed expectations, driven by market demand and the China- US trade agreement.

In the first two months of this year, the US surpassed Ukraine, which has been the largest corn exporter to China, and will likely exceed it for the whole 2021, an expert close to relevant authorities told the Global Times.

“This year, the US is set to replace Ukraine as the largest corn supplier to China, and imports of US corn will account for 70 percent of China’s corn imports this year,” the expert said.