Record Chinese Harvest to Weigh on Corn Futures

After one of the biggest droughts recorded in US history, you would expect corn prices to be going through the roof.  Not so after Chinese farmers are recording their third record corn harvest, and driving US corn exports to a 40-year low.

China has claimed their corn stockpiles to be at a nine-year high last month as their harvest has been surveyed to be almost 4% higher than last years.  For this reason, the USDA expects a 64% drop in Chinese corn exports.

Corn (futures) looks like it needs buyers at these prices.  In my opinion, without fresh buying from China we will see corn prices slide down,” said Christian Moreno, a commodities broker at HighGround Trading group in Chicago, regarding the current corn futures situation.  Moreno, Added, “We have always counted on China to buy U.S. corn and if they leave the market we will probably see lower (corn futures) prices.”

The trend for corn futures has been distinctly down until the end of September, but sideways ever since.  I am probing the short-side of corn futures with tight stops, but suspect the trading to be light until Friday’s USDA Crop Production report.

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