The acreage of corn is shrinking. What is the current supply and demand situation of corn?

In terms of the current situation of corn in China, it is still in the stage of oversupply, but with the promotion of the reform of grain supply-side structure in our country, the planting area of corn is also gradually reduced, and the price of corn is also gradually over-market. Now, China's grain storage inventory is also gradually declining, but the overall supply situation is still in a state of oversupply.

In 2017, there were 179 million tons in grain depots, compared with an all-time high of 230 million tons. After successive auctions in April, May and June this year, the USDA estimated that China's corn stocks at the end of 2018 were 60.5 million tons. It should be said that on the whole, China's corn inventory is in a downward trend. The surplus of corn in China showed negative growth for the first time in 2017. According to the current trend, the supply of corn in China will gradually tighten in the future.

The reduction of corn inventory is mainly due to the expansion of the production capacity of corn processing enterprises. Judging from the situation of the corn auctioned in our country this year, basically all of them belong to old corn, and even the corn sold in April is basically 2013 and 2014 corn, and this kind of corn is difficult to be used as feed, which is basically used for ethanol processing, and the current rapidly expanding production capacity has greatly digested the corn inventory. It is estimated that there will be more than 20 million tons of capacity expansion in China in the future.

At the same time, due to the promotion of China's grain structure planting reform, the planting area of corn is also gradually reduced. For example, according to the planting situation of this year, the planting area of soybean, rice and peanut has increased to different extents. But the planting area of corn is constantly declining. In 2017, the planting area of corn is 530 million mu, a decrease of 40 million mu compared with 2015, which is getting closer and closer to the national target of reducing 50 million mu.

In this way, the overall corn reserve of our country is still quite sufficient, which exactly should belong to surplus. Under the current situation of expanding soybean and reducing corn in our country, the grain structure of our country will be more balanced in the future. Whether from the maintenance of China's food security, or domestic grain import and export will be of great significance.

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