China Corn Projected Down; U.S. DDGS Exports Up

The U.S. Grains Council (USGC) projects total corn production in China of 148.79 million metric tons (5.86 billion bushels), with lower yields than 2008. High Chinese corn prices are a key reason for the country’s higher distiller’s dried grains with solubles (DDGS) imports from the U.S.

USGC personnel recently toured cornfields in the Northeastern Chinese provinces of Heilongjiang, Liaoning, Inner Mongolia, and Jilin to assess the corn crop and formulate an estimate of this year’s harvest. The Council’s China Corn Tour evaluated nearly 300 cornfields, which includes fields in the Northern China Plain of Anhui, Henan, Hebei and Shandong provinces.

“Our number this year shows a 9.7 percent decrease from China’s National Grain and Oils Information Center’s (CNGOIC) number last year, which was 165.92 million tons (6.53 billion bushels),” said Cary Sifferath, USGC senior director in China. “The drought really affected parts of China’s major corn producing regions, especially in western parts of Jilin and Liaoning provinces and eastern parts of Inner Mongolia province. We project the national yield to be around 79 bushels per acre, compared to CNGOIC’s 2008 figure of 88.5 bushels per acre.”

Sifferath also noted production acreage has been capped as the government is trying to set up regulations to contain the loss of farmland, as any increases in corn acreage are done at the expense of another crop. Despite the likelihood of a decrease in China’s corn production, there seems to be little sign that China will begin importing corn anytime soon.

Corn exports also don’t appear to be likely; China exported 5.27 million tons (207.47 million bushels) of corn during the 2006/07 crop year, but there have only been minimal corn exports since then. Based on the expected drop in production, it is unlikely significant quantities of corn will be exported during the 2009/10 crop year.

“Current corn prices in China would make exporting difficult, as Chinese corn is too expensive to compete in the world market today,” said Sifferath. “In fact, the high prices of corn and other feed ingredients is why we are seeing U.S. DDGS (distiller’s dried grains with solubles) exports to China skyrocket in a very short amount of time.”

USGC projects exports of U.S. DDGS to China in 2009 to reach 250,000 to 300,000 tons — more than 18 times the 8,000 tons exported in all of 2008. Sifferath expects DDGS exports to continue upward to minimize losses resulting from the high price of corn in China.

Leave a Reply

Management Stories

ManagementMACA 2014: The State Of The Agricultural Industry, And Then Some
October 9, 2014
The trade association’s annual gathering featured speakers from across agriculture and beyond. Read More
StewardshipA Multi-Layered Approach To Water Quality
October 6, 2014
Illinois event highlights research and technology designed to better monitor and improve water quality — and the benefits of cooperative, coordinated effort. Read More
StewardshipMichigan Agriculture Leaders On Toledo Water Ban: We Want To Be Part Of The Conversation
August 8, 2014
Leaders of Michigan agricultural organizations said Thursday that the government should not have a “knee-jerk reaction” based on last weekend’s water ban in Toledo due to fertilizer run-off in Lake Erie. Read More
ManagementRussia Bans U.S. And EU Ag Product Imports In Ukraine Sanctions Battle
August 7, 2014
Russian President Vladimir Putin has banned the import of agricultural goods from countries that have imposed sanctions on Russia. Read More

Trending Articles

CropLife 100Agrium To Cut 500 Jobs, Sell Some Businesses
November 11, 2014
Among the businesses Agrium will try to sell are its micronutrients and European UAN (urea-ammonium nitrate) lines. Read More
HerbicidesMonsanto, Sumitomo Chemical And Valent Extend Crop Protection Collaboration
November 10, 2014
The agreement extends their strategic partnership in Monsanto’s Roundup Ready PLUS Crop Management Solutions platform for soybeans and cotton in the U.S. Read More
FertilizerCorn Rootworm Hybrids And Potassium Uptake
November 4, 2014
To achieve successful yields, grower-customers can’t afford to cut back on their potassium use with corn rootworm hybrids, say experts. Read More
StewardshipResponsibleAg Begins Auditor Training
October 31, 2014
ResponsibleAg auditor training is now underway at the Ford B. West Center for Responsible Agriculture in Owensboro, KY. Read More
InsecticidesNew Research Study Shows The Value Of Neonics
October 29, 2014
The study evaluated seed treatment, soil and foliar uses of neonicotinoid insecticides in the U.S. and Canada. Read More
Crop InputsPlatform Specialty Products To Acquire Arysta LifeScience
October 20, 2014
Once the acquisition is complete, Platform Specialty Products will combine Arysta LifeScience with previously acquired companies Agriphar and Chemtura Crop Solutions. Read More

Latest News

EquipmentAGCO Announces Operator Of The Year Finalists
November 20, 2014
Four custom applicators have been selected by AGCO Application Equipment as finalists for 2014 Operator of the Year, an honor that recognizes them as being among the top professionals in their industry throughout North America. Read More
MicronutrientsH.J. Baker Expands Tiger-Sul Business
November 20, 2014
H.J. Baker has created and filled two strategic positions in business development and sales within its Crop Performance Division. Read More
soybean field
FertilizerGeneral Mills Honors United Suppliers For Nitrogen Opti…
November 19, 2014
United Suppliers winning proposal detailed SUSTAIN, a consulting network that provides customized products and services for farmers using a needs-based system approach. Read More
EmployeesOhio AgriBusiness Association Awards $25,000 In Scholar…
November 19, 2014
Each year, the Ohio AgriBusiness Association Educational Trust scholarship program awards scholarship dollars to students enrolled in an agriculture-related field attending several state colleges. Read More
ManagementServi-Tech Names New CEO
November 17, 2014
Servi-Tech has named Greg Ruehle its new president and CEO. Read More
CropLife 100Pinnacle Ag Acquires Colorado Aerial Application Outlet
November 17, 2014
Ft. Lupton, CO-based Reck Aviation — a full-service chemical application company providing aerial crop applications of fertilizers and crop protection products — will operate as part of Pinnacle's AgOne Application Services brand. Read More
Eric SfiligojMcDonald’s Message: Biotech Crops Scarier Than Cancer
November 17, 2014
Despite their potential health benefits, one of the world’s largest potato users will pass on a new biotech offering. Read More
MicronutrientsWinField Releases 2014 NutriSolutions Results
November 14, 2014
A number of significant regional and national crop deficiency trends emerged from the 2014 WinField NutriSolutions tissue sampling program. Read More
FertilizerH.J. Baker Opens Chinese Production Lines
November 14, 2014
The occasion was the official launch of the Tiger-Sul sulphur Bentonite production line of two much anticipated fertilizer products in China, T90CR sulphur fertilizer and TZinc micronutrient enhanced sulphur fertilizer. Read More
ManagementOhio Certified Crop Adviser Program Accepting Nominatio…
November 14, 2014
The award recognizes an individual who delivers exceptional customer service for farmer clients in nutrient management, soil and water management, integrated pest management and crop production in Ohio. Read More
HerbicidesSyngenta Announces Acuron Trial Plot Results
November 14, 2014
Acuron was tested at 167 trial locations across 35 states. Trials included 95 Syngenta locations, 54 university locations and 18 distributor locations. Read More
Crop InputsVerdesian Expands Sales Force
November 13, 2014
The new sales representatives will work with growers, retail partners and distributors to oversee technical training and product education. Read More
EquipmentAGCO Raises $100K For Wounded Warrior Project
November 13, 2014
AGCO Corp. partnered with local AGCO dealers across the U.S. and Canada to raise nearly $100,000 in support of wounded service veterans. Read More
HerbicidesDow AgroSciences Announces Launch Of Enlist Duo Herbici…
November 12, 2014
It will be launched in conjunction with a stewarded introduction of Enlist corn, and seed production of Enlist soybeans in 2015. Read More
FertilizerH.J. Baker Expands Tiger-Sul Business
November 12, 2014
Agricultural firm H.J. Baker has created and filled two strategic positions in business development and sales within its Crop Performance Division. Read More
Blenders13 Fertilizer Blenders For 2015
November 12, 2014
Dealers can find a fertilizer blender to deliver any speed, volume and custom mix they want. Read More
CropLife 100Wilbur-Ellis Vice President Receives Honorary FFA Award
November 11, 2014
Jim Loar, vice president of operations of Wilbur-Ellis’ Agribusiness Division, was awarded the Honorary American FFA Degree at the 2014 National FFA Convention and Expo in Louisville, KY. Read More
FertilizerBASF Makes Limus Nitrogen Management Available In U.S.
November 11, 2014
Reducing ammonia losses by more than 90%, Limus nitrogen management has demonstrated increased crop yields on average of 6%, according to 2013 replicated research. Read More