Corn Futures Strong as China Lifting Import Ban on GMO Corn

Corn futures remains at lofty levels after the Chinese government is said to have lifted its ban on genetically-modified corn. China has recently purchased 900,000 metric tons of corn in lieu of lifting this ban.

A report today from the China National Grain & Oils Information Center claims their country has contracts for 15 cargoes of “dried distillers grain” for shipment between this month through the first quarter. China is now the largest buyer of this corn by-product otherwise known as “DDGS” – the result produced once starch has been stripped from corn for ethanol production use.

All eyes are watching how efficient the Chinese are in using this new product to their economy,” said Barb Levy, chief director for The Fox Group’s futures division in Chicago, sharing her fundamental analysis insight regarding the current corn futures situation. Levy added, If this new product is useful to the Chinese, the sky is the limit to what they can do with US corn.”

The trend for corn futures has been up since early October with no top yet in sight. I exited our long corn position one week ago today just before the monthly crop report in anticipation of the “December seasonal low” which hasn’t happened yet. I am still looking for a way back in the long side of corn futures.

ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.