China will end auctions from its state corn reserves to increase new-crop corn buys, according to the National Grain Trade Center. China has sold around 20 million metric tons of old-crop reserve corn at those auctions this year. The Center says it will consider additional corn stockpile sales in May of 2017. Pro Farmer reports that speculation is also on the rise that China will subsidize corn processors to make it cheaper for them to purchase corn, boosting consumption. Talk of the subsidies accelerated when corn processors in the number one corn growing province of China raised their purchase prices, bringing them in line with regional prices offered by the state grain reserve. The market expects Beijing to issue a subsidy of 200 Yuan per metric ton of corn through the 2016-17 marketing year.
From the National Association of Farm Broadcasting news service.