China Corn Import 2012-13 about 7 million tons, Soybean Import also rise

High consumption of corn commodity make China import corn about 7 million tons in 2012-2013 after 4 million metric tons in 2011-2012. Soybean imports will likely rise 12% on year in 2011-12 to 58.5 million tons under a baseline scenario, and by 15% or more to exceed 60 million tons in best-case.

Sleeping in China Economy next year is unlikely to weaken the country's agricultural demand, since the government can secure global supplies to replenish low domestic inventories. As inflation eases and crush margins improve, Rabobank forecast a rebound in China palm oil demand in 2011-12, up 5% to a record 6 million tons.

In the U.S., Corn basis levels at the U.S. Gulf slipped 3 cents for the spot month. Soybean Gulf basis levels, however, jumped 1 to 5 cents versus futures, according to U.S. Department of Agriculture data. Cash grain markets remain strong versus futures prices, but could begin to soften as grain begins to move more freely.

A lack of farmer selling has boosted cash market prices and limited losses in futures throughout the fall. Expectations that prices could go higher and farmers' stable financial positions after a year of sharply higher crop prices have encouraged farmers to hold on to supplies.

In first week December 2011 Cash corn's Chicago Board of Trade futures shrunk to 8 1/2 cents, from 11 1/2 cents at the start of the week, according to a national cash grain index maintained by the Minneapolis Grain Exchange. Cash soybeans' discount to January CBOT futures shrunk 1 1/2 cents during that time period, to 43 1/2 cents.

Category: china corn, Corn, corn commodity, corn import, corn prices 2012, Info Commodity, us grain market