China: Grain and Feed Update
In spite of China’s economic growth slowdown, Chinese feed demand remains strong. Swine numbers are forecast to recover and poultry production is forecast slightly higher in MY2016/17 and MY2017/18. 2016 has also been a dynamic year for Chinese agricultural policy and market prices. The Central Government has abandoned price support policies for all commodities except wheat and rice. Several new Central and Provincial Government reforms for corn and other feed grains have started liquidation of government surpluses through auctions and processor subsidies, tightened market access for cheaper imports, and ended China’s long-standing price policy supports.
