Via Bloomberg
Saw this article on Bloomberg this week that is worth further investigation. Corn has seen its best performance against commodity peers for 40 years. The reasoning is as follows for the strength:
- China wants to hold back food inflation and start to repair ties with the US post President Trump
- Imports from the US have increased, while shipments from Australia have dropped off due to worsening diplomatic relations.
- China's hog herds are being built up again after they were hit by the African swine flu.
- Corn makes a good biofuel feedstock, so will benefit from Biden's policy to reduce carbon emissions.
- Corn futures market is in backwardation (indicating strong present demand) and expectations are that strong demand will sustain until mid-2022
- The seasonally selling for Corn does not come in strongly until June. See here.
The above makes a case for buying corn on the dips
