Feed Outlook No. (FDS-04C01) 17 pp

May 2004

Is China's Corn Market at a Turning Point?

Many analysts see signs that China's corn market is reaching the turning point in a decade-long cycle. China curtailed corn exports in calendar year 2004 and may begin to import corn during marketing year 2004/05. Reduced Chinese exports are also driving U.S. prices higher. Higher prices and increased shipping rates have kept U.S. corn out of the China market, but growing demand and limited production capacity will eventually make China a net importer of corn. China's reduction in exports will expand opportunities for U.S. exports.

Keywords: china, corn, exports, imports, prices, export subsidy, interregional marketing

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