The U.S. Grains Council is following the market implications of China’s announcement that it will end its corn stockpiling program.
Related story: China to end state corn stockpiling
“Our offices in Washington and Beijing have been monitoring signals that reforms were coming,” said U.S. Grains Council president and CEO Tom Sleight in a media statement. “While we are surprised they have been accelerated, we are hopeful they will be a step in the right direction toward more market-oriented decisions related to the supply and demand for corn.”
The U.S. Grains Council, which has been involved in the Chinese market for more than 30 years, plans to continue monitoring the situation.
“Although domestic corn prices in China have declined by about 30% in the past six months, and this announcement has had market impacts already, Chinese corn is still priced well above the world market,” Sleight said. “We will be seeking additional details about this announcement and monitoring its ongoing impact on feed grains markets, particularly as farmers in both our country and China begin planting.”
Related story: China's magic corn mountain
Source: U.S. Grains Council