2010 was a turning point for China as the country announced it would no longer be self-sufficient in corn production and would turn to imports to meet demand. Shanghai JC estimates that China will import roughly 6 million tons of corn in 2011 and up to 15 million tons in 2014. Other analysts estimate China will import up to 8 million tons of corn in 2011, which is a roughly 600% increase from 2010’s Chinese imports of 1.3 million tons.

Where will China import all this corn from? The first place they will turn to is the U.S., which is the world’s largest corn exporter, accounting for roughly 60% of global corn exports in 2009. Argentina and Brazil, the second largest exporters, only account for roughly 10% of global exports each.

http://seekingalpha.com/article/248830-china-expected-to-import-8-million-tons-of-corn-in-2011?source=yahoo

Wheat Rises to Highest Since 2008 on Demand, China Drought

Wheat prices extended a rally to the highest since 2008 on signs that political tension in the Middle East and North Africa is spurring governments to boost grain imports, while drought threatens the crop in China.

Egypt, the world’s largest importer, on Feb. 11 agreed to buy 170,000 metric tons, including 55,000 from the U.S. Iraq is buying wheat from the U.S. and Australia, Reuters reported. Prices in China, the world’s largest consumer and producer, jumped to a record after the government said snow failed to ease dry conditions.

“Unrest in the Middle East is probably causing some stockpiling,” said Mike Zuzolo, the president of Global Commodity Analytics & Consulting in Lafayette, Indiana. The market “is able to hang on there nicely, given the Egypt tender and expectations for more tenders from the Middle East in the next day or two.”

http://www.bloomberg.com/news/2011-02-14/wheat-climbs-to-highest-since-2008-on-global-demand-gain-drought-in-china.html