Bullish CORN story may be developing in the East.
Apr 25, 2013
The far East!!! I am hearing there could be a few weather worries popping up for Chinese corn producers. Nothing as of yet to get overly excited about, but we do have to recognize the fact China is the worlds second largest corn producer, any type of production glitch will certainly cause extreme ripples across the market, especially since very few are looking that direction. From what I hear producers in China's northeast corn belt are running a couple of weeks behind in planting. This area is important because it produces about half of China's domestic supply. In fact, Heilongjiang, the top corn producing province, has had its wettest winter in 50 years, leaving more than 12 million acres extremely wet. On flip side some areas to the northwest are too dry and are starting to cause some concern as it threatens emergence. Bottom-line, with China's domestic corn production being critical the market could quickly get more nervous if weather issues become a more threatening concern. Keep the Chinese weather situation up on the radar screen. World Corn Production Data:
US producing 273.8MMT's
China producing 208.0MMT's
Brazil producing 72.5MMT's
EU-27 producing 54.7MMT's
Argentina producing 26.5MMT's
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