With Sorghum Enroute, China Increases Corn Import Forecast

BEIJING, CHINA – According to the U.S. Grains Council (USGC), the Chinese government is reversing its previous effort to reduce corn planted area as feed demand is expected to rise 4 percent this marketing year. Corn futures have spiked to their highest level since 2015 at the same time Chicago futures are at their lowest level since 2016. Feed mills have become cautious about buying grain amid rumors that imports will be arriving in April and May to tamp down prices. The government raised its corn import forecast by 1 million metric tons (MMT) to 5 MMT and its auctions of reserve corn are expected to start soon. As the Phase One trade agreement with the United States ramps up, reports signal at least 11 shipments of U.S. sorghum en route to China. (USDA/FAS; Reuters; Bloomberg)