Chinese Customs Limit Foreign Corn Deliveries to Support Farmer Prices

Chinese customs have instructed traders to limit deliveries of foreign corn into bonded areas in order to address domestic oversupply and boost prices for farmers before the planting season. This move is intended to support the agricultural sector and comes amid the use of bonded areas by traders to import grain at more affordable rates. The country has an official corn-import quota of 7.2 million tons with a low 1% tariff, beyond which additional duties of 65% apply. However, corn brought into bonded areas can be processed into animal feed at a lower duty. This strategic shift is aimed at mitigating oversupply challenges while stimulating local corn prices, ultimately providing relief for farmers as they prepare for the upcoming planting season.