China's entry into WTO leads to low price of corn

Introduction: on December 17, Chicago (FWN), the Overseas Agricultural Bureau of the U.S Department of Agriculture released the latest China food, feed corn and wheat express in 2001 On Friday, the USDA released the report, which was signed on December 7 [key points of the report] due to the cancellation of corn export contracts and the signing of corn import contracts in 2002, corn prices in China have recently declined Although the proportion of wheat replacing corn in feed decreased, it remained at a high level The sown area of winter wheat had no change compared with that before, but the weather drought affected the yield in 2002 China's corn situation and Outlook: in recent months, corn prices have been declining At the end of the summer, the average domestic price per ton reached nearly $140, but now it is below $125 The listing of new corn has been the cause of the price drop, but other factors have also accelerated the price weakness Corn exports are less dynamic than previously expected In October, only 327428 tons of corn were exported, a new low since June Many insiders have predicted that due to the low price of corn in the international market, it is difficult for China to fulfill the unrealized corn export contract of 3.5 million tons before its accession to the WTO in January After its accession to the WTO, China will cut its export subsidies after January One corn exporter has announced the cancellation of at least one million tonnes of outstanding contracts China's accession to the WTO has led to a downturn in corn prices China will face a tax rate quota (TRQ) of 5.85 million tons of corn in 2002 The government has not yet allocated the tariff line, but industry reports say Jilin grain group, which is likely to get the quota, has purchased at least 500000 tons of corn for delivery in the second quarter of next year Although the price in China is still much higher than that in the world market, a considerable part of these TRQs will not enter China in 2001 Considering the income of farmers, the Chinese government is likely to postpone the import of corn as far as possible within the scope of TRQ In addition, despite the poor harvest for two consecutive years, the supply situation of corn is relatively good Last year a lot of feed wheat was sold, so corn stocks are still large Due to the lack of reliable data on corn stocks, it is difficult to digest all TRQ in China, even in the current situation of such weak world corn prices (author:) share to feed Weibo share to: