China, the world’s largest buyer of soybeans, will increase soybean acreage over the next five years and reduce corn plantings, officials said Thursday, Reuters reports.
China’s soybean plantings will go up to 23.1 million acres, from 16.1 million acres by 2020, the report said. meantime, corn acreage will fall over the next five years to 82.3 million acres.
The increase in soybean acreage isn’t likely to curb China’s unrelenting demand for soybean imports, according to Andrew Shissler, a partner at S&W Trading in Downers Grove, Ill.
“Chinese policy supports the big three: corn, wheat and rice,” he says. “Beans are the fill-in for demand. Beans demand looks to keep advancing and not head the other way around.”
China currently has huge stockpiles of corn as a result of its former policy, which the country abandoned this year. The policy encouraged farmers to switch from soybean plantings to corn by paying them inflated prices for corn.
In the livestock sector, China has modest growth planned for meat output, from 38.7 million tons of beef and pork to 41 million tons by 2020, according to the report.