Chinese corn futures soar after government confirms ethanol and bioplastics commitment

February 7, 2017 |

In China, the “number one document,” a key rural policy document, was released late on Sunday indicating the government still aims to cut down around 20 million metric tons of poor quality corn stocks for use in ethanol and bioplastic, a move that saw corn futures prices on the Dalian Commodity Exchange soar to 18-month highs on Monday when nearly a week’s average volume was traded in a single day. Part of the increased volume came from hedge funds looking for better returns than iron ore and steel futures, hoping to make their fortunes from corn.

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Category: Policy

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