Wheat Consumption Growth in China Corn Commodity Stay

China consumption of wheat growing while corn stay self-sufficient in corn and the autumn harvest will probably increase, so corn commodities imports may grow, the increase will not be significant, China will keep policies to support wheat and corn farmers and maintain controls on the domestic grain market.

Corn futures advanced 18 percent in Dalian in the past year and wheat prices increased 25 percent in Zhengzhou. China imported the most corn in 14 years and sold 13.7 million metric tons from stockpiles in the north of the country. The government may not replace all the corn sold from inventories, Zeng said today. Heavy rain and low temperatures have hurt corn, wheat and rice crops, contributing to gains in local prices.

China government is determined to curb excessive speculation and hoarding. While corn consumption will increase, supply and demand is balanced and price gains aren?t justified, she said. Corn for May delivery advanced 0.4 percent to 2,046 yuan ($304) per ton on the Dalian Commodity Exchange today. The most active contract climbed to 2,070 yuan per ton on Sept. 8.