September 30, 2016

PITY THE POOR MALTHUSIANS:

Exclusive: China set to export corn, posing new threat to battered global market - sources (Dominique Patton, 9/30/16, Reuters)

China has given approval to at least two companies to export corn, trading sources said, in a radical move by the world's No. 2 producer to cut its ballooning surplus and unleash more supply into a saturated global market. [...]

Traders and analysts said exports have been increasingly likely as China struggles with a massive grain surplus and prepares to harvest a bumper crop, its first in almost a decade without government price support.

Chinese corn prices have slumped more than 20 percent in the past year and are expected to fall further towards international benchmarks.

Even if quantities are limited at first, sales abroad would spook major exporters such as Brazil and the United States, increasing competition at a time when record harvests are predicted in many regions. Five of the top ten largest corn importers are in Asia, which may allow China to compete against the Americans and others with lower freight costs.

Posted by at September 30, 2016 11:55 AM

  

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