China will import 20m tonnes of corn as demand for feed grows strongly

There are signs that the problem of rising food prices, which have plagued the world over the past year, is intensifying.
outbreak affected the food supply chain, paralysing transport and sicking workers, ultimately raising global food prices.
prices of corn and soybeans have risen to their highest level in seven years, raising the cost of raising cattle, pigs and poultry in particular by at least 30 per cent.
To stay profitable, producers, including Tyson Foods, the largest U.S. meat supplier, are raising prices, which will spread through the supply chain and become apparent in the coming months, when global beef, pork and chicken prices will rise further.
the last time grains were so expensive was after the 2012 U.S. drought, when meat prices rose sharply.
now meat is likely to drive global food inflation again.
demand for feed is increasing, which is driving up feed prices, including a decline in global harvests caused by bad weather and an increasing demand for feed.
, such as China, as the biggest buyer, is buying large quantities of feed on the market to feed its growing herd of pigs.
of rising grain costs are also already felt by major exporters of meat.
, the world's largest poultry exporter, increased the cost of raising chickens by 39 per cent last year because of feed prices, according to Embrapa, Brazil's national agricultural research institute.
local corporate investment bank said feeding costs rose again last month by about 6 per cent.
, livestock profits have fallen sharply in Europe due to weak demand due to high feed prices and coronary disease blockades.
Chenjun, a senior analyst at ABN Co-ed, said some smaller pig farmers could be forced out of the market.
food and agriculture, global meat prices rose for the fourth straight month in January, according to the Food and Agriculture Organization of the United Nations.
, the world's largest supplier of agricultural products in the coming months, said the country's record-breaking agricultural procurement spree was not over.
china could import at least 20m tonnes of corn.
dave MacLennan, chief executive of Cargilla, said the Chinese buying spree would continue for at least two more quarters until China, the world's top importer of soybeans and corn, was well supplied.
he says crop prices need to rise to curb consumption.
prices have risen by more than 50 per cent since bottoming out in August.
demand for animal feed is growing strongly as China's pig industry recovers from the 2018 African swine fever outbreak.
-U.S. trade agreement with the U.S. and China also requires China to buy large quantities of U.S. agricultural products.
recently bought a record 5.85m tonnes of corn in four working days, more than in previous years.
So far this year, the U.S. has sold 17.7m tonnes of corn to China, both loaded and unloaded, well above sales to Mexico, the second-largest buyer, and Japan, the third-largest buyer, and well above the 60,000 tonnes sold in the same period last year.
china's annual low-tariff quota for corn imports is 7.2 million tons.
addition, the U.S. has sold 35.3 million tons of soybeans to China so far this year, the highest sales pace since at least 1991.
McLennan says the old saying goes that high prices are the prescription for high prices.
prices haven't come to an end yet because China has been buying big.
U.S. farms are shrinking, the outbreak of livestock could push up meat prices even further.
such as outbreaks of avian influenza in some European and Asian countries; The outbreak of swine fever in Africa has also continued to spread in several countries, recently leading to the closure of a pig company in the Philippines.
, executive director of the Kansas Livestock Association, said market and climate challenges could prompt livestock farmers to scale back.
, livestock has begun to shrink because of low profits during the outbreak.
. pigs fell 0.9 percent in December from a year earlier, while cattle fell 0.2 percent in January, according to government data.
in the next few years, we expect supply to become increasingly tight, " says Mr Hughesman.
”