China: Grain and Feed Update
Corn prices have steadily risen reflecting overall tightness in feed-quality corn supplies, despite official reports of greater supplies, and weaker demand associated with the spread of African Swine Fever. The bulk of available commercial and government inventories of corn are intended for industrial processing. In February 2019, prices of grain and feed products are entirely dependent on market access developments. China has recently started implementing several policy programs to restructure its domestic wheat and rice sectors. Government quality and grading standards and direct producer payment subsidy reforms will be fully implemented beginning in MY2019/20. The PSD tables for feed grains (corn and sorghum) are updated for 2018/19 based on trade to date, and continued expansion of industrial processing. There are minor updates for food grains (wheat and rice) also based on trade to date.
