April 5, 2021
Corn futures in China drop more than 1.5%
The Dalian Commodity Exchange's most-active corn futures dropped more than 1.5% in early trade on March 31 to RMB 2,610 (~US$397.40; RMB 1 = US$0.15) a tonne, before recovering later, Reuters reported.
Meng Jinhui, an analyst at Shengda Futures, said the decline comes after farmers sold off stocks ahead of new crop planting, as well as processing and feed companies holding onto ample supplies.
The contract posted its biggest drop in seven months on March 29.
Meng said there is an increasing number of imported corn and substitutes arriving at ports, while feed mills have turned to wheat and rice as alternative livestock feed.
Referring to concerns of a large corn deficit that was discussed in the latter half of 2020, Meng said the market is more aware that the gap has disappeared.