It seems that the dry weather in the US Midwest will not be the only factor adding pressure on global corn supplies, with Bloomberg reporting on 13 July 2012 that demand from several Asian countries is projected to increase significantly. Yet, as shipments from the United States, the world’s largest corn grower, are reduced on account of deteriorating crop conditions, it is as yet unclear where the corn supplies to meet the growing demand from Asia will come from.
According to Rabobank International, as quoted by Bloomberg, demand from several Asian countries, including China, is expected to rise. Jean Yves Chow, senior industry analyst covering grains, animal-protein and food-processing markets, noted in an interview that China, the world’s largest corn user, was likely to import at least eight million metric tonnes in 2012-2013, relative to the five million tonnes imported in 2011-2012. Mr Chow attributes the projected increase to the rising need for grains as the country’s backyard farms are replaced by commercial farms using about 50-55 percent of corn in their feed formula. “China, which used to export corn to South Korea, will be importing almost as much as South Korea,” said Mr Chow.
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