BEIJING-State-owned Chinese agri-giant Cofco said on
Wednesday there would be no more new ethanol projects for the time being as
Beijing was worried over possible grain shortages.
Cofco chairman Frank Ning told Reuters China would halt most
grain exports this year, apart from a small amount to selected destinations,
such as Hong Kong and Taiwan.
He was confirming market expectations that China would no
longer export grains, including corn or wheat, as Beijing tries to avoid imports
in the face of sky-rocketing grain prices and dwindling global stocks.
Asked about possible grains imports, Ning said: "Right now
foreign grains cannot come in because they are too expensive."
He added China did not have any supply problem for corn this
year as many corn processing plants had already closed down due to high grains
prices.
"The biggest problem for China is soybeans: we cannot produce
enough. It would require a lot of land. We don't have so much land. Imports will
continue to grow," he said, without giving any figure for soy imports this year.
China is already the world's top soy importer, accounting for
about a half of global trade in the oilseed.
Chicago soy futures hit a record high of nearly $16 bushel on Tuesday, helped
by expectation for big Chinese imports.
