RSS
Twitter
Linked In
News In
Markets
Linked In
RSS
https://twitter.com/Agrimoney
http://www.newsnow.co.uk/h/Industry+Sectors/Agriculture

You are viewing 1 of your 2 complimentary articles.

Register now to receive full access.

Already registered?

Login | Join us now

Warning over China drought helps corn higher

Twitter Linkedin

A tour of China by US farm experts has fuelled expectations that China's corn crop will come in way below official forecasts, warning that it has been "really affected" by drought.

The US Grains Council (USGC), a trade body, said after a tour of more than 300 fields in four provinces that China's corn crop would come in at 148.8m tonnes.

The figure is line with estimates from Shanghai analysts JC Intelligence and Chinese processing giant Cofco, who have also warned of the impact of drought.

USGC director Cary Sifferath said: "The drought really affected parts of China's major corn producing regions, especially in western parts of Jilin and Liaoning provinces and eastern parts of Inner Mongolia province."

However, the figure is well below official estimates of a crop in line with last year's 166m tonnes.

Wheat support

The USGC added that China looked unlikely to import corn this year, despite the shortfall.

Nonetheless, the report helped December corn close 1.4% higher at $3.38 ¾ a bushel in Chicago.

A 1.3% rise in oil was also credited for supporting corn, a major source of biofuels, as was a recovery in wheat, which ended 6 cents higher at $4.55 ¾ a bushel for December delivery.

There is a growing feeling that the grain may have been oversold after a drop of more than 35% between June and a low two weeks ago. It has failed since to drop far below $4.50 a bushel.

Soybeans brought up the rear in Chicago, closing down 6.5 cents at $9.19 ½ a bushel, weighed down by the prospect of a heavy US crop.

By Agrimoney.com

Twitter Linkedin
Related Stories

Abares lifts hopes for sugar futures, but cuts its cotton price forecast

A downgrade to Australia curtails an upgrade in world sugar output expectations. But for cotton, Abares ditches ideas of a global production deficit

Evening markets: Ags poop party lifting other commodities, shares

Wheat futures set another contract low, while arabica coffee hits its weakest close but one in 19 months, despite buying in other asset classes

Australia cuts wheat export hopes, pegs canola shipments at 7-year low

The country’s Abares bureau sees a dent to wheat shipment prospects from a smaller harvest, but lifts expectations for coarse grain exports

Hedge funds turn net bullish on ags - ahead of price drop to historic low

Speculators are wrong-footed in soymeal, in which they hike bullish bets just before a price tumble. But they fare better in cotton and cocoa
Home | About | RSS | Commodities | Companies | Markets | Legal disclaimer | Privacy policy | Contact

Our Brands: Comtell | Feedinfo | FGInsight

© Agrimoney.com 2017

Agrimoney.com and Agrimoney are trademarks of Agrimoney Ltd
Agrimoney is part of the Briefing Media group
Agrimoney Ltd is registered in England & Wales. Registered number: 09239069