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Kevin Van Trump has over 20 years of experience in the grain and livestock industry.

They say wet weather in China's Northeast region reduced their overall corn “quality."

Apr 01, 2013

 Bulls will want to argue that Chinese corn demand is poised to push dramatically higher, as insiders don’t think there’ll be enough good "quality" corn to meet feed-mill demand by the late summer months. The talk is wet weather in China's northeast region reduced their overall "quality." Heavy snow this winter increased moisture content and reduced density, making the grain more susceptible to mold and less suitable for feeding animals (Bloomberg). This in turn might induce more of a national shortage of good quality corn in the months ahead for China. Even though I don't doubt the fact China will be importing more corn, I question how much will actually be sourced from the US. Remember, Argentine corn is already begin offered at close to $1.50 cheaper than US new-crop corn. Let’s also not forget Brazil and Ukraine corn is being offered much cheaper as well. Also keep in mind China just invested a large sum of money in a partnership with Ukraine Ag leaders. Moral of the story, yes, China maybe in the market for more new-crop corn moving forward, but the question remains, how much will sourced from US providers? Click here and fill out the information for my report, I will send it directly to you.