Chinese Think Tank Sees Nation's Grain Supply Running 27 Million Tons Behind Demand

[hatrack]

Chinese think tank the National Grain and Oil Trade Center reports that the world's most populous nation is facing a significant grain and oilseed supply deficit as the rising population and strong demand have offset production increases and rising import levels. That's according to a story early Tuesday from Dow Jones Newswires.

The Trade Center estimates 2007 grain production at 501.5 million tons against demand of 527.5 million tons for a total short fall of 26 million tons.

That is primarily due to a soybean deficit of 31 million tons, along with a half million ton rice deficit. Wheat's expected to have a 6 million ton surplus and corn could have a 3.1 million ton surplus.

In their November 9 world production update, the United States Department of Agriculture placed Chinese corn production at 145 million tons, rice at 129.50 million, wheat at 106 million, and soybeans at 14.3 million tons.

EDIT

http://www.agrimarketing.com/show_story.php?id=47229

[AlecBGreen]

1. bad news

but not the end of the world. The Chinese use soybeans primarily to make tofu, cooking oil, and as livestock feed. The dietary staples (rice, veggies, pork) are mostly unaffected. Still, pork is at record prices anyway so this wont help. Those farmers must getting more pissed by the day.