FEATURE: CHINESE REFORM CREATING MARKET UNCERTAINTIES States and China had record corn harYHVWV &KLQHVH RI¿FLDOV KRZHYHU LQFUHDVHG WKHLU VXSSRUW SULFHV DV XVXDO WKDW\HDU7KLVDFWLRQFUHDWHGDODUJHJDS EHWZHHQWKHSULFHVRI&KLQHVHFRUQDQG LPSRUWHG FRUQ )HHG PLOOV KDG VWURQJ impetus to import cheaper corn from WKH JOREDO PDUNHW EXW LPSRUWV ZHUH OLPLWHG E\ D TXRWD$XWKRULWLHV IXUWKHU OLPLWHGLPSRUWVE\UHMHFWLQJPRVW86 FRUQVKLSPHQWVLQZKLFKWKH\GHWHFWHG DQ\WUDFHRIDQXQDSSURYHGJHQHWLFDOO\ PRGL¿HG YDULHW\ :LWK LPSRUWHG FRUQ ODUJHO\ LQDFFHVVLEOH LPSRUWV RI VRUJKXPDQGEDUOH\²DOVRFKHDSHUWKDQ GRPHVWLFFRUQ²VRDUHGWRDFRPELQHG PLOOLRQWRQQHVGXULQJ´ 2I¿FLDOV LQ &KLQD KDYH DFNQRZO- xxxxxxxxxxxxx HGJHGWKHGLVWRUWLQJQDWXUHRIWKHFRXQWU\¶V IDUP VXSSRUW SURJUDPV DQG KDYH SOHGJHGWRDGRSWPRUHPDUNHWRULHQWHG PHDVXUHV ,Q WKH FRXQWU\ MHWWLVRQHG LWV SULFH VXSSRUW SURJUDPV IRU VR\EHDQVDQGFRWWRQLQIDYRURIDSLORW ³WDUJHWSULFH´GH¿FLHQF\SD\PHQWSURJUDP*DOHVDLG REFORMS CREATE MARKET UNCERTAINTIES (IIRUWV WR VKULQN WKH FRXQWU\¶V VWRFNSLOHV KDYH JHQHUDWHG XQFHUWDLQW\ LQJOREDOFRPPRGLW\PDUNHWVKHDGGHG'HVSLWHWKLVXQFHUWDLQW\*DOHVDLG IXUWKHUJURZWKLQDJULFXOWXUDOWUDGHEHWZHHQ WKH 8QLWHG 6WDWHV DQG &KLQD LV OLNHO\LIXQSUHGLFWDEOH ³&KLQDLVHQJDJHGLQLPSRUWDQWHFRQRPLF UHIRUPV WKDW FRXOG DIIHFW ERWK GHPDQG DQG VXSSO\ IRU DJULFXOWXUDO FRPPRGLWLHV´ *DOH VDLG ³&KLQHVH OHDGHUV VD\ WKH UHIRUPV DUH GHVLJQHG WRVWUHQJWKHQWKHUROHRIFRQVXPHUVDV GULYHUVRIGHPDQGIRUFRPPRGLWLHVUHGXFHSULFHGLVWRUWLRQVDQGHQVXUHWKDW UXOHV DQG UHJXODWLRQV DUH DSSOLHG XQLIRUPO\ ,I WKH UHIRUPV OHDG WR D PRUH PDUNHWRULHQWHG &KLQHVH HFRQRP\ WKH\FRXOGOD\DIRXQGDWLRQIRUDPRUH VWDEOH86&KLQDWUDGLQJUHODWLRQVKLS 8QFHUWDLQW\IRUH[SRUWHUVFRXOGEHUHduced if Chinese authorities standardL]H UXOHV DQG VDQLWDU\ VWDQGDUGV DQG FRQVLVWHQWO\DSSO\LQVSHFWLRQDQGWHVWLQJSURWRFROV´ )URP &KLQD¶V SHUVSHFWLYH DFKLHYLQJ DQG SUHVHUYLQJ IRRG VHFXULW\ ZLOO UHTXLUH D VWURQJ WUDGLQJ UHODWLRQVKLS ZLWK WKH 8QLWHG 6WDWHV *DOH VDLG ,I 86 SURGXFHUV DUH FRQ¿GHQW LQ WKH VXVWDLQDELOLW\DQGUHOLDELOLW\RIWKDWUHODWLRQVKLS WKH\ ZLOO LQYHVW WR VXSSO\ WKDW PDUNHW *DOH VDLG %\ FRQWUDVW ³XQSUHGLFWDEOH WUDGH DQG PXUN\ WUDGH UXOHV ZLOO OLNHO\ FRQWULEXWH WR JUHDWHU PDUNHW YRODWLOLW\ DV &KLQD EHFRPHV D ODUJHUDJULFXOWXUDOLPSRUWHU´ Josh Sosland is editor of Milling & Baking News, sister publication of World Grain. He can be reached at jsosland@sosland.com. We want to hear from you - Send comments and inquiries to worldgrain@sosland.com. For reprints of WG articles, e-mail reprints@sosland.com. For more information, see Page 122. 46 June 2015 / World Grain / www.World-Grain.comhttp://www.iesclean.com http://www.World-Grain.com