The return of China to buying large volumes of U.S. corn has come just as domestic processors in the country are having to raise their bids in order to secure enough supply to keep operating, trade sources told Agricensus Tuesday.
“Processors are bidding for cash corn in the U.S., which means their prices are going to go higher,” one U.S.-based source told Agricensus, with the heavy export programme now a key element in driving domestic prices higher.
Ethanol producers will have limited capacity to switch, but feed processors in the Plains are said to be looking at switching to high protein wheat should corn price itself out of the mix.
Read the full report at Agricensus.
