Record corn demand by China is forecast

China’s appetite for the world’s corn is expected to soar to a record this year as the Asian nation grapples with a grain shortfall.

Corn prices in Chicago surged to a nearly eight-year high after the U.S. Department of Agriculture’s Beijing office lifted its forecast for China’s corn imports by 17 percent to 28 million metric tons for the marketing year ending in September. If realized, it would be the most ever, according to Bloomberg data.

China, the world’s biggest pork producer, is contending with a grain supply pinch as it works to feed hogs recovering from a deadly virus. While its goal is to boost reliance on domestic crops, China is still expected to buy 15 million tons of the world’s corn in the season starting in October, according to the USDA. That would be the second-biggest year on record.