An early year drought is counterbalanced by low corn prices and the availability of discounted shipments rejected by China. A certified importer of the majority of its feed inputs, Vietnam has a track record of using strategic feed crop sourcing and good market timing to minimize its growing dependence on foreign feed crops.
China's feed demand has fallen two years in a row. Importing 11 to 13 times soy than corn, the former will be impacted far more strongly than the latter. Coming at a time of year when overly optimistic crop estimates frequently pull down prices, the USDA's April WASDE was unusual, pulling both corn and soy inventories to levels that provide price support.