China's appetite for US corn is expected to continue to strengthen in the year ahead, with imports trending towards the high end of current expectations, Bloomberg reported.
Bloomberg cited sources familiar with purchasing plans of state-owned Cofco Corp., saying the firm is likely to boost purchases of US corn beyond already robust levels. The news comes about a week after Chinese corn imports exceeded the country's annual tariff rate quota (TRQ) — currently 7.2 million metric tons — for the first time.
“The fact that China has exceeded its feed grain import quota already tells you there's a great need there,” Rabobank analyst Stephen Nicholson told the outlet. “And it doesn't seem to be slowing down.”
China's continued rebound from COVID-19 and the rebuilding of its swine herd following a devastating African swine fever (ASF) outbreak are both helping to drive corn imports higher, Bloomberg noted. Meanwhile, China has turned to the US to satisfy that demand as other suppliers—including those in South America—see more supply disruptions.