China: Grain and Feed Update
Link to report:
China’s overall feed demand and consumption are down though not as a dramatically as expected with the reduction in the swine herd due to African Swine Fever. Losses have been offset by increased feed demand for other animal proteins, namely poultry, eggs, and aquaculture, all of which are expanding production. Domestic production of most grains remain steady with a slight increase in both corn and wheat production due to increased yields. Stocks of all commodities remain high due to slowing auction purchases of state reserves. While optimism exists in the wake of the U.S.-China Phase One Trade Deal with China’s pledge to import more U.S. agricultural products including grain and feed, these purchases have yet to materialize. However, other barriers such as China’s Tariff Rate Quotas and competition from both domestic production and imports from other nations will present challenges for U.S. products.
