By Jon Scheve, Superior Feed Ingredients, LLC
Two months ago, farmers hoped corn prices would stay above $3. Two weeks later, many feared $3.50 would be the high before harvest. One month ago, corn hit $3.75 before rolling back to $3.60 and many felt the high for the season might have been posted. Then Friday, corn traded to $4.20, leaving everyone questioning where the top will be.
What is causing this?
An unexpected increase in China’s supply needs is a major reason. For the last 30 years, China never imported more than 7 million metric tons (MMT) per year. With 1 MMT equaling about 40 million bushels, that’s equal to around 280 million bushels.
However, in the last 2 weeks, reports suggest that China will need to import at least 30 MMT over the next year to maintain supply needs. That would be 1 billion bushels from around the world more than estimated just 2 months ago.… Continue readingRead More »