For China, MY2016/17 is the first season that the temporary reserve policy in North East provinces and Inner Mongolia has been replaced with the new “marketized purchase” and government direct producer payments program. MY2016/17 corn production forecast is unchanged at 219.6 million tons from the USDA January forecast, as slightly higher yields offset lower harvested area. 

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Forecast MY2016/17 corn consumption is revised up 10 million tons to 237 million tons on significantly higher feed use and policy driven FSI use. Forecast MY2016/17 corn imports are cut 1.0 million tons from the January USDA estimate to 2 million on diminishing price competitiveness for import supplies. 

MY2016/17 corn ending stocks are forecast lower at 95.3 million tons, down 11 million from USDA January estimates on lower production and imports and higher consumption. MY2016/17 wheat production is forecast unchanged from the USDA January estimate at 128.9 million tons as growers benefit from government price supports.