This file photo shows farmers bagging their crop of harvested corn outside their home beneath a watchtower at the Hushan Great Wall on the outskirts of Dandong in northeast China's Liaoning province. (FREDERIC J. BROWN / AFP) BEIJING - The projection of China's corn consumption from October 2017 to September 2018 has been revised up to 224 million tonnes on forecasts of higher industrial consumption, according to a report by the Ministry of Agriculture and Rural Affairs. The figure is 1.5 million tonnes higher than the February projection, but the average wholesales price in the domestic market is expected to remain in the range of 1,600 yuan per tonne to 1,700 yuan per tonne, said the Chinese Agricultural Supply and Demand Estimates in March. Issued by the Chinese Agriculture Outlook Committee, an advisory body on market information under the ministry, the monthly analysis attributed the price stability to the continuous oversupply in the domestic market as the corn inventory remains high. The figure is 1.5 million tonnes higher than the February projection, but the average wholesales price in the domestic market is expected to remain in the range of 1,600 yuan per tonne to 1,700 yuan per tonne With corn reserves to be auctioned soon, market supply will continue to increase and check the upward pressure on prices triggered by higher industrial consumption, according to the report. Industrial consumption has grown as processing enterprises successively resumed their production after the Lantern Festival, which fell on March 2. ALSO READ: China's industrial output expands 7.2% in Jan-Feb The capacity of corn processing factories being used has been better than expected, and industrial consumption for corn processing is expected to grow, it said. In February, the committee predicted that China's corn imports for the statistical period would be around 1.5 million tonnes, up by 300,000 tonnes from the projection a month earlier. Statistics from China' General Administration of Customs showed that 2.83 million tonnes of corn was imported in 2017. The report also projected soybean imports of 95.97 millions tonnes for the 12 months ending in September 2018. China's actual soybean imports hit 95.53 million tonnes in 2017, the highest in the world. Projection for China's total soybean consumption in the statistical period remains unchanged at 110.56 million tonnes. Over the same period, China's cotton imports are expected to be 1.10 million tonnes while domestic cotton consumption is projected at 8.22 million tonnes. The country's consumption of edible vegetable oil was predicted at 33.56 million tonnes, with 6.03 million tonnes to be purchased overseas, said the report. The committee also revised down China's sugar output in the statistical period by 50,000 tonnes to 10.3 million tonnes, while sugar exports were revised up to 120,000 tonnes as relevant transit trade was expected to grow.
Growing industrial consumption of corn in China saw estimations between October 2017 and September 2018 rounded up by 1.5 million tonnes to 224 million, according to a report by the country's Ministry of Agriculture and Rural Affairs. Despite the rising demand, the price is expected to remain stable at between CNY1,600 ($253) and CNY1,700 ($270) per tonne, due to continued oversupply. The United States has been one of China's biggest buyers for years, but its appetite for U.S. corn, soybeans and other agricultural products appears to be waning.