China Corn Market Sees Surplus Amid Favorable Climate Conditions

The Ministry of Agriculture and Rural Affairs in China released its August 2026 report on agricultural products supply and demand. The forecast for corn supply and demand remains unchanged from last month, with favorable climate conditions in major producing areas benefiting crop growth.

However, high temperatures have increased the risk of grain storage, leading to a phased surplus in the market due to active selling by traders. Additionally, imports of substitutes like sorghum and barley have contributed to this surplus.

In contrast, the drought in US producing areas is expected to ease soon, with sufficient pending exports from South America. This has loosened expectations of tight international corn supply slightly.