Adding to its sizeable stockpiles of sugar and cotton, China is set to see a giant stockpile of corn as well, boosted by record crops, large government buying, and slowed domestic demand. At the end of this season China’s corn stockpile will likely equal 80.6 million tons according to the International Grains Council (IGC) – a forecast 3.4 million tons above forecasts issued by the U.S. Department of Agriculture. The IGC goes on to state that the country’s corn stocks will increase further in 2014/15 by 6.7 million tons to 87.3 million tons, or equal to 49% of the world’s total. Because of this build-up and the prospects of a record corn harvest this year of 220 million tons, China’s corn imports are forecast to decline in 2014/15. Imports for this season are expected to be 4.8 million tons. With high stocks in sugar, cotton, and now corn leading to smaller buy-ins, China’s influence over agricultural markets is weakening and is not having the same effect over prices that it once did in 2011.
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