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Date Added: 14/10/2011

The Great Chinese Corn Robbery


The oilseed rape market has made a good recovery this week, as prices gained momentum on Tuesday ahead of Wednesday’s USDA report. Chicago corn prices went limit up on Chinese buying which supported soya and wheat prices as well.  On the Wednesday the USDA report produced a bearish wheat report on higher wheat and corn stocks but bullish soya report on lower yields and lower US ending stocks.


Interestingly enough the USDA estimated 1.5 million tonnes of US corn exports to China for the marketing year on Wednesday, but on Thursday reported 1.1 million tonnes of corn export sales to China in one go. The USDA are also reporting Chinese corn stocks at nearly 30 million tonnes higher than some other estimates. China have also been buying increasing amounts of soya as crush margins are better than normal.


It is nearly 40 years since the Great Russian Grain Robbery of 1972 when Russia bought large amounts of US wheat sending prices significantly higher. If Chinese corn and soya stocks are lower than estimated maybe these price rises will lead to a period of higher sustained prices?





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