China’s enormous livestock is poised to harvest millions of tons of wheat from the country’s most recent winter crop, extend the conversion of the crop to animal feed, and reduce demand for corn imports.

Reuters reports that corn imports last Year after a decline in inventories and production rose, driving prices up and changing global grain markets as feed producers and pig farmers searched the world for supplies.

At the same time, China’s feed sector started buying from the 2020/21 season Record quantities of cheaper wheat to be used as a substitute for corn, which has traditionally been the main grain in animal rations. “Wheat feed demand is expected to remain very high in the new crop year as wheat still has obvious advantages over stale corn based on current prices,” said Li Hongchao, senior analyst at trading website

While China limits low-tariff corn imports to 7.2 million tonnes per season, buyers imported a record 11.29 million tonnes in the 2020 calendar, mainly from the US, as high domestic prices drive imports even when paying Made tariffs economical.

According to Qi Chiming, analyst at the & Oils Information Center (CNGOIC) in China, an official think tank, the feed batches began with the large-scale substitution of wheat from the end of 2020, which effectively facilitates the supply of corn and the domestic supply with Feed grain was secured.

The new wheat crop is likely to further dampen demand for imports. CNGOIC is forecasting a record harvest of 136.4 million tons in 2021.

“We are waiting for the new wheat and will buy whenever the opportunity arises,” said a purchasing manager at a large poultry producer in northern China who refused to to be named for not having the authority to speak to the media.

The company started replacing around 15% of its corn fodder with wheat earlier this year and will have enough wheat stocks by the end of June. </ According to CNGOIC, China is expected to use 36 million tons of wheat as feed in the 2021/22 crop year, after using 38 million tons of wheat in 2020/21.

“Wheat prices are expected to be lower than corn prices which offers an obvious advantage for the substitute (corn). The feed manufacturers are very excited about the purchase of the new wheat, “said Qi.

Wheat prices in Henan Province, a top producer, were 2,540 yuan (US $ 398.88) per tonne on Wednesday May 26th well below the price of corn in the same region of 2,980 yuan per ton.

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