China Plants Less Corn

China, the world’s second-biggest corn consumer, will reduce planted acreage for the grain by 3.3 million hectares, or 9 percent, by 2020, said an agriculture official. It seems unlikely that the cut will significantly dent the country’s huge oversupply.

Beijing’s attempt to bring supply in line with demand is being closely watched by overseas markets, which also face a glut that recently pushed U.S. prices to their lowest in almost two years.

China is seeking to adjust its crop structure because years of state support for farmers led to a jump in corn output far beyond market demand, saddling the government with huge stocks.

China halted its state stockpiling this year, and Beijing is urging farmers to grow alternative crops such as soybeans or silage crops.

China has an estimated 240 million tons in state reserves.   Source: Reuters