BEIJING(Commodity Online): If the estimates of a Chinese think tank is anything to go by, China’s 2011 Corn output may rise 3.93% from last year to a record 184.5 million tons.
In a report in Reuters, The China National Grain and Oils Information Centre (CNGOIC) has revised up its estimate for corn production by 2 million tons; thanks to expanded planting area and positive weather in most parts of the Middle Kingdom.
The figures come as a relief in a country where battle against inflation is a key-factor. Corn prices have hit record highs recently which in turn was causal in pushing up the prices of meat and eggs to record highs there.
With animal feed demand pouring in, it may be that the bumper harvest could meet requirements to an extent, but not the overall demand.
Besides China is also replenishing its state reserves which is below comfortable levels.