China's corn production hits a record high

Just as the world's attention is focused on severe weather damaging the corn yield potential in the United States and Europe, Chinese farmers are expected to harvest a record corn crop this year.

In its latest monthly report released last week, the International Grains Council (IGC) raised its forecast for China's corn production to 225 million tonnes, 5 million tonnes above the June forecast. The IGC also raised its global corn production figure.

Although global corn production will still be below last year's record level, the upward revision to China's corn production will partly offset the declines in the United States and the European Union.

In July this year, CBOT corn futures prices fell 9.7%, the largest monthly drop in nearly a year, as the market speculated that global corn supplies would be very ample.

The IGC expects global corn production in 2015/16 to reach 966 million tonnes, 0.3% above the June forecast. The IGC expects China's corn production to grow 4.3% this year.