China has raised its 2024 corn production estimates by 4.2% to 288.8 million tonnes.
The increased outlook is due to a larger planted area and heavier rainfall, according to a report from the U.S. Department of Agriculture (USDA), which monitors China’s agriculture sector.
The revised production number suggests a bumper corn crop in China this year, the majority of which is expected to go towards domestic consumption.
U.S. officials expect China to use the corn to feed both its domestic population and livestock, as well as for industrial applications such as ethanol production.
The increased domestic crop is likely to lead to corn imports into China declining by three million tonnes this year, a development that could impact shipments from the U.S. and Canada, as well as Europe.
The increase in China’s corn production is expected to have a sizable impact on the global grain market in coming months and shift global trade dynamics.
China is the second-largest corn producer in the world after the U.S. and the biggest importer of the crop, taking in about $7 billion U.S. a year of corn from foreign countries, according to the USDA.
The price of corn has declined 35% over the last 12 months to $4.40 U.S. per bushel, near a three-year low.
