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.
America's revising of its EPA mandated ethanol output and large impending Latin crops follow on the heels of bumper US corn and soy harvests. Mid November saw one of the blackest Friday's possible for the corn market when the US Environmental Protection Agency (EPA) announced that it was proposing to cut its mandated ethanol production quota from last year's 14.4 billion gallons to somewhere between 12.7 to 13.2 billion gallons -approximately 8.3% to 11.8% less than in 2013.