CHICAGO, Dec 31: US corn will benefit from China’s decision to tax grain exports in 2008 but most traders had already expected China to halt overseas sales to control soaring domestic food inflation, said grain traders on Monday.

“Everyone had pretty much written China’s exports off for the next year,” said Dan Cekander, an analyst with Fimat Futures in Chicago. “I don’t think it means that the trade has to change their numbers significantly.” US corn exports are forecast at a record 2.45 billion bushels (62.2 million tons) in the marketing year that started Sept. 1, surpassing the previous record of 2.4 billion in 1979-80, according to the US Agriculture Department.

China announced on Sunday that it would impose a 5 per cent tariff on exports of corn, rice, soybeans and sorghum starting Jan 1. Beijing set a 20pc tariff on exports of wheat, barley and oats.

At the same time China has cut import taxes on soybeans and scaled back its plans to make biofuel from corn.

China is battling inflation of 6.9 per cent, an 11-year high, which until now has been driven by soaring food prices but has shown signs of spilling over to the broader economy.

Domestic corn prices jumped more than 10 per cent in November and rose 20 per cent in some provinces.

“I think it speaks volumes about their internal grain stocks,” said a US corn trader. “I don’t know if you’re going to see a lot (of corn) come out of there this year.” Chinese corn exports have slowed during the past few months.—Reuters