In 2014/15 marketing year yield of corn in the PRC is expected to amount 223 million tons. CNGOIC reports.

This is by 2.1% more than the actual result obtained in 2013/14MY; and, 1 million tons more than has been previously forecasted by the USDA experts.

China, recall, is one of the world’s largest producers of agricultural crops; economical situation of its national market- primarily, the country’s import capacity- largely determines the situation on the global market.

Growth of national grain production in China is likely to lead to a significant decrease in its demand for imported corn. According to experts’ predictions, rate of import purchases of corn by Chinese importers will start to decline in the beginning of 2014/15 season, and at the end it barely will reach 3 million tons, against 3.5 million tons imported in 2013/14 marketing year.

Due to stress reduction on the corn market, Chinese government is introducing new restrictions aimed to reduce the risks of entering their domestic market of American GM-corn that has not been certified in China. Thus, recently Chinese authorities imposed a ban on import of corn bards from the U.S. if exporter doesn’t have a certificate confirming absence of the GM- component. Given that there are no certificates of this kind issued in the United States, in fact, we are talking about a total ban on import of corn processed goods into China. This kind of policies pursued by the Chinese authorities demonstrate country’s reduced dependence on the imported corn, which puts, given the importance of China as a major importer of grain, considerable pressure on its world prices.