Monday, February 27, 2012

China Corn Import Speculation Supporting Prices

Speculation that China may boost its corn imports from the United States has offered support to corn prices, even though other factors point to weakening conditions going forward.

For now though, corn futures for May delivery climbed to $6.485 a bushel, a gain of 0.7 percent.

As for China, the assumption is it will want to build up diminished inventory before the corn season in that country begins.

At this time it's less expensive for China to import corn from the United States than to use its domestic supply.

Drought conditions in crucial corn-producing areas of South America make the United States a probable choice for Chinese corn imports.

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