Beijing – January 21, 2021
China imported a record amount of cereals in 2020 and has been a driver of the surge in prices of wheat, corn and barley in recent weeks.
The world’s largest agricultural market, it bought a record 11.3 million tonnes (Mt) of corn, including 2.25 Mt in December alone, according to data from the General Customs Administration.
This is 135.7% more than in 2019. This is the first time that Beijing has exceeded its annual import quota set at 7.2 Mt.
Likewise, wheat imports rose 140.2% to 8.38 Mt.
Barley rose 36.3% to 8.08 Mt.
But sorghum recorded the best performance. (+ 478.6%) with an imported volume of 4.82 Mt.
China ramped up its global grain purchases last year with the rebuilding of its pig herd, which had been ravaged by African swine fever, and a domestic corn shortage.
The appetite of China is also at the level of oilseeds, also in connection with the recovery of the pork sector, soybean imports progressing by 13% to a record of 100.33 Mt.
Brazil was the big one. beneficiary of this surge with 64.28 Mt, up 11.46%.
Nevertheless, over the year, Beijing bought an increasing volume of soybeans from the United States in order to respect the phase 1 agreement.
Thus imports from the United States jumped by 52.8% compared to 2019 to stand at 25.89 Mt.
2021 Chinese demand for cereals should remain high, analysts say.
” Domestic corn prices are too high. We will continue to buy alternatives, including imported corn, wheat and barley, the head of a major feed and pig producer told in southern China.
Chinese corn futures have risen 40% in the past two months and hit record highs last week.
The country’s maize supplies have tightened after the sale of reserves as typhoons affect the new crop.
“ China’s corn imports are widely expected to exceed 30 Mt in marketing year 2020/21, ” said an official from a global transport company.
High corn prices have also pushed producers to foods to source domestic wheat as a substitute.
Likewise, China is expected to import more soybeans due to strong demand and high margins in crushing.
