China cuts 2024/25 corn production forecast in December outlook

China’s agriculture ministry lowered its forecasts for corn production for the 2024/25 crop year in its December outlook released on Tuesday. It estimated corn output at 293.84 million metric tons, down from 297.01 million tons in a previous forecast.

“There was more rain during the new corn harvest period in some parts of Northeast China, and the temperature was high in early November, which made corn storage more difficult and farmers’ willingness to sell grain higher than in the same period of previous years,” the ministry said.

Meanwhile, China’s soybean production is expected to rise 0.54% to 20.65 million tons thanks to increased planting areas, enhancing the soybean balance by a remarkable 27.5%. Edible oil output adjustments, along with reduced palm oil imports, highlight a strategic sector shift, although the overall balance shows a significant drop.

The drop in corn production reflects ongoing challenges posed by climate impacts, potentially influencing global prices and supply chains. Meanwhile, the increased output in soybeans and edible oils suggests areas of opportunity, shifting market focuses and investment potentials. Cotton production also exhibits growth, potentially stabilizing the textile market despite decreased import dependence.

Tags: crop forecast, China, corn