CRM Agri analysts today noted ongoing uncertainty as to whether, when or to what degree Chinese buyers are going to resume buying corn, having only purchased 73K tons in the last week of 2021.
“Much is at stake for global markets as China has the potential to purchase another 15-20MT of corn this season should market dynamics allow it.”
Funds remain strong buyers of corn, increasing bullish bets on the corn prices into the end of the year as conditions in South America have worsened, said those grain market specialists.
“With global stocks extremely tight and sub-optimal weather conditions in South America, there remains a high chance of further upside in corn markets should China return to the market.”
Having rallied, corn prices in China increased their premium over US export prices ahead of the Chinese Spring Festival, but, in line with CBOT values, they drifted lower into the end of the year, they reported.
“Further Chinese corn purchases will be driven by the domestic demand and therefore prices for the remainder of the season,” said the CRM Agri team.