China: Grain and Feed Update

China’s overall feed production is projected to rise through the end of calendar year 2022. Corn production in MY 2021/22 is adjusted to 272.6 million metric tons (MMT), up 11.9 MMT from last year owing to higher planting area despite slightly lower yields. At the same time, corn and sorghum imports are expected to remain at near record levels despite China’s tariff rate quotas (TRQ) remaining unchanged. Post’s sorghum imports are estimated higher in MY 2021/22 due to price advantages and China’s recent buying spree. While corn prices have softened leading some feed mills to return to more corn in their rations with less wheat and rice, southern feed mills report difficulty sourcing adequate volumes of sufficient quality corn and continue to mix alternative grains.