Chinese purchases prop up corn markets
Posted: 5/12/2010




In a year where planting has progressed quickly and a large corn acreage is expected in the U.S., good market news should be hard to come by. Fortunately there has been enough import interest from China to prop up prices.

AgWeb reports traders remain optimistic about China’s buying intentions. As a result, corn futures have remained relatively stable at a time when they normally begin to drop.


Traders believe much of China’s import buying from the U.S. has been done by millers and processors, the story says. They’re looking at U.S. corn because it’s actually cheaper to bring in than transporting grain from northern China to the south.


On top of that, the Chinese government has been releasing some corn stocks, increasing speculation that it will be in a buying mood soon. If that happens, keep an eye on the corn futures, traders advise.


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