When is it most advantageous for Beijing to narrow the gap between Chinese and international corn prices? It is mid 2010. Corn is below US$3.50/bushel and appears to be headed lower. Analysts and large banks are forecasting years of corn below US$4/bushel.
A constellation of factors including droughts, thin US inventories, technical buying, biofuel policies and congested Latin American ports continue to push up the cost of feed crops and palm oil. With Russia's president announcing it had no immediate plans for its troops to go beyond Crimea and invade the rest of Ukraine, one would have expected feed crop prices to fall, but in this case, they did not.