Corn Drops to Two-Week Low amidst Recent Chinese Import Rejections
Corn futures have dipped to a two-week low based on concerns China may decrease imports.
According to a recent Investing.com report, corn has dropped to a two-week low amidst concerns over a slowdown in demand for U.S. supplies, led by China’s decrease in imports.
Corn futures for March delivery on the Chicago Mercantile Exchange traded at $4.2163 a bushel, down 0.8%, representing the lowest level since December 2. Concerns over a declining demand from China heightened last week as the nation rejected U.S. corn cargo after detecting an unapproved genetically modified strain in the imported crop. This is the fifth time U.S. cargoes have been rejected since mid-November, raising concerns that the world’s second largest corn importer may slow down its activity.
A recent Reuters article explains the concerns in slowing import rates from China are tied to ideas that the nation will increase testing for MIR162. The unapproved variety known as Agrisure Viptera corn by Syngeta AG, has been found in several containers of dried distillers’ grains (DDGs) at various ports in China in recent time.
The appearance of this variety has caused some U.S. exporters to halt shipments of corn to China due to concerns they may be rejected. One major container exporter outside of Chicago says in the Reuters article, "We are now canceling any unshipped corn. Risk is too high in corn.
The recent U.S. corn cargo rejections in China have attributed to a two-week low for corn futures on the Chicago Mercantile Exchange, according to various sources. Genetically modified strains have appeared in various U.S. shipments, causing exporters to hesitate shipping to the world’s second largest corn importer.