What China does on corn, ethanol and DDGS seen driving market in 2019

January 1, 2019 |

In the Midwest, Platts reports that if China decides to continue its retaliatory tariffs on US soybeans, it would see farmers switch planting this spring to more corn than soybean which would in turn depress corn prices and increase margins. Improved margins would then not only boost ethanol production but also demand for DDGS, also in China, who could look to start buying DDGS again as a replacement for soy-based animal feed. Key will be China’s decision to either buy corn, ethanol or DDGS, each of which will have a different impact on corn prices.

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