China’s Demand for Imported Grains Remains High

Chart of Note
This week’s Chart of Note illustrates the stunning record of more than 18 million metric tons of total coarse grains and co-products imported by China from October 2013 to September 2014.

This week’s U.S. Grains Council’s (USGC’s) Chart of Note illustrates the stunning record of more than 18 million metric tons of total coarse grains and co-products imported by China from October 2013 to September 2014.

As the chart shows, in the two preceding years China’s coarse grains and co-products imports were only 10 million tons and 8.5 million tons respectively. While China’s corn production and stocks continue to rise, China’s agricultural policies maintained high domestic corn prices. At the same time, the record 2013 U.S. corn crop brought global prices down significantly. This created high local demand for imported coarse grains and co-products, including sorghum, barley and distiller’s dried grains with solubles (DDGS), which don’t face the same import quota system as corn.

Despite all of the complexities in China’s trade policies, one thing remains constant: end-users love the quality and value of imported feed ingredients.