China’s wheat carryout in 2020-21 is set to fall for the first time in eight years, though the world’s leading grower has more than a year’s worth of supply in storage, Reuters reports.
Chinese corn prices began to surge last year, which is expected to increase wheat feeding in the coming months as the country works to restore pork production.
Part of the overhaul of China’s crippled pork industry following the 2018 onslaught of African swine fever was the elimination of using food waste for feed, which raises demand for feed grains to an even larger degree.
The potential threat to wheat and rice reserves also seemingly favors more imports of other feed ingredients, such as U.S. corn, though there has been little movement on that front in over a month.
