Chinese corn stocks could drive further demand for US corn and DDGS

In China, as much as 20% of the country’s corn reserves—the total of which represent half of the world’s corn reserves—are likely to be spoiled and unfit for human consumption which has led to a spike in imports over more than 1 million metric tons in both April and May predominantly from the US and Ukraine. US corn prices have fallen off significantly ahead of the impending harvest, helping to boost ethanol crush margins to 14-month highs but continued Chinese demand may help to temper price weakness. The feed situation in China is also helping to support imports of DDGS.