USDA expects China corn ending stocks falling to 79.2 mln tn in 2017-18 from 101.2 mln tn in 2016-17. Corn supply in China may tighten in coming years if the country’s plan to reform the grain sector materialises. China plans to achieve nationwide use of E10 (10% fuel ethanol and 90% gasoline) by 2020. The E10 target implies that China would need to produce 12 mln tn of transportation fuel ethanol just in 3 years. This will require 36 mln tn of corn. China is also looking to accelerate the usage of corn as livestock feed to reduce the huge corn stocks and develop the animal husbandry industry in the country. The country recently removed restrictions on foreign investment in the processing of corn.