Corn future and spot prices have dropped to their lowest levels in six years. The government has facilitated the liquidation of temporary reserve stocks with various producer support and processor support programs. This new trend is going to change the dynamic of China’s feed markets. Since late September 2016, milling-grade wheat prices have surged 10 to 12 percent in middle and southern China. MY 2016/17 China wheat production is forecast to fall about 1.34 million tons, or 1.03 percent, on lower yields. Exuberant State Grain Administration market interventions have contributed to greater scarcity in the market for milling-quality wheat. Milling grade wheat prices have exceeded the RMB 2,500 per ton ($9.98 per bushel) offering a valuable arbitrage opportunity for global wheat exporters.
China: Grain and Feed Annual