China's corn production last year hit a record 144 million tons, 3.3 percent more than in 2005, the National Grain and Oil Trade Center said yesterday.

The crop was grown on 27.1 million hectares last year, nearly a 3 percent increase over 2005, the center said, and forecast that it could be grown on 27.4 million hectares this year.

The main reason for the record output was the good weather during the later stages of cultivation in northeast China, and if the weather remains favorable, corn output could reach 146 million tons this year, an increase of 2 million tons.

The steady increase in corn output and area on which its grown is attributed to the higher rate of profit the crop earns compared to soybeans.

In recent years, huge capital, domestic and overseas, has been invested to grow corn, which is used to make bio-fuel to meet the energy shortage created by rising global oil prices. The crisis pushed up corn (and other grain) prices to a record high at the end of last year.

The output both of wheat and rice rose last year, too. Wheat production increased 6.6 percent year on year to 103.8 million tons, while rice output rose slightly to reach 180.8 million tons.

The center forecast that this year the total area used to grow wheat would fall by 650,000 hectares to 22.8 million hectares. Wheat output, too, would drop to only 99.5 million this year.

The reason for this, the center says, is the drought in north China that prompted farmers to grow winter wheat last year. Also, farmers in some areas have stopped growing wheat.

Total rice yield, however, is likely to touch 187 million tons this year without much change in the area under paddy cultivation.

All the forecasts will be adjusted after April, when the spring sowing season begins.

(China Daily March 13, 2007)