China's resumption of corn export poses a threat to American corn

Introduction: China resumed exporting corn on Friday, the first time it has exported corn since May It is estimated that more than 3 million tons of corn will be exported Such a large quantity means that Chinese corn is a threat to American corn again Affected by this, Chicago corn futures fell sharply It is estimated that the corn sales volume will reach 3-3.5 million tons this time, compared with 1.5 million tons previously expected by the market The FOB price of the deal was $105 per ton, the lowest set by the two exporters It has been reported that the shipment has been extended to January and February, rather than September to December, which was previously designated by Jilin grain group and COFCO Many Asian Importers, such as South Korea and Malaysia, have already purchased most of the corn shipped before November, while the demand for shipping after January has not been met International market analysts believe that the sale of corn in China is related to the huge reduction of grain stocks before China's accession to the world trade organization China is eager to sell, and there are obviously export subsidies Corn prices are weak in China And China has corn stocks to export Once China joined the world trade organization, it will have to cancel the export subsidies to corn At present, it is estimated that the subsidies will reach more than 400 yuan per ton, or 48.20 US dollars It is estimated that China still has about 40 million tons of corn in stock The impact of the drought on China's corn is not as serious as originally expected China is expected to harvest 110 million to 115 million tons of corn in October Chinese corn sales are likely to gobble up American corn's share in Asia South American corn is no longer competitive as it nears the end of the year Due to the impact of China's corn export bidding, Chicago corn price has been revised back since last week, which in turn reduces the competitive advantage of China's corn Since June, Chicago's corn price has been rising, and China's corn has a relatively competitive advantage in price However, some traders say the price of Chinese corn is a little low at $105 Many people think corn prices in Chicago will pick up At present, the export price of corn in the United States is US $111 to US $112 per ton, the CNF price in South Korea is November, and the CNF price in Southeast Asia is US $113 to US $114 Considering the freight cost between China and South Korea is $6 per ton, the price of Chinese corn is almost the same as that of American corn But unless Chinese corn is $3 to $5 a ton cheaper than American corn, South Korean Buyers will buy American corn South Korea imports more than 600000 tons of corn every month But Malaysia may prefer Chinese corn Malaysia and South Korea accounted for 80% of China's 10 million tons of corn exports last year Malaysia purchases 200000 tons of corn every month China's corn export bid did not include Japan, which specifically asked for corn that was naturally dried As the world's largest corn importer, Japan imports 16 million tons of corn every year.