Corn market calling China’s bluff
An ag economist says a significant increase in global corn ending stocks was a surprise in a largely unsurprising USDA global supply and demand report.
USDA’s global corn ending stocks estimate was increased by 13 million metric tons.
The University of Missouri’s Ben Brown…
“Seventy-seven percent of that increase came from ending stocks in China on increased production for last year and then, also increased beginning stocks for last year,” he said.
He tells Brownfield corn futures closing higher on Friday after the increased ending stocks estimate points to the market’s distrust in China’s reported production increase.
“I sit here – and I think, you know – the market must be looking at those Chinese corn numbers and thinking, ‘ok, we didn’t believe them before today and we don’t believe them after today’,” Brown said.
Brown said the market likely factored in much of the USDA’s report earlier in the week because of the Farm Service Agency’s leaked numbers.