The return of China tobuying large volumes of U.S. cornhas come just as domestic processors in the country are having to raise their bids in order to secure enough supply to keep operating, trade sources toldAgricensusTuesday.
“Processors are bidding for cash corn in the U.S., which means their prices are going to go higher,” one U.S.-based source toldAgricensus, with the heavy export programme now a key element in driving domestic prices higher.
Ethanol producers will have limited capacity to switch, but feed processors in the Plains are said to be looking at switching to high protein wheat should corn price itself out of the mix.
Read the full report atAgricensus.
