China: Rice Auction Sales Boom

Corn production in 2019/20 is up 20 million tons from July’s projection to 250 million tons, as area harvested and yield are adjusted higher. As of September 5, 2019, corn auction sales were down more than two-thirds compared with the previous year’s accumulated total. Wheat consumption in 2019/20 is adjusted up two million tons due to stronger domestic flour production. Government procurement of the 2019/20 wheat crop is up 18 million tons from the previous year due to greater supplies meeting minimum grading standards. Auctioning of rice reserves in 2019 has been attractive for domestic buyers and selling rates (ratio of rice purchased to rice offered) have been robust in this year’s second quarter (Apr. – Jun.). Since January 2019, China auctioned nearly 12 million tons of rice from its state-owned inventories, up significantly from the previous year. 

China: Rice Auction Sales Boom