China's efforts to reduce its maize stocks already cause that the imports of maize, sorghum and DDGs are dramatically plunging. Now, arguably the wheat prices in the United States under pressure come as a great harvest.
Two months ago, China announced that it wants to end maize intervention. In recent years, this had led to that the world's largest corn supplies were accumulated there now. The premiums on local maize meant that corn and alternative products were imported by large consumers. This benefited exporters in the United States in the first place.
In Kansas, the top sorghum producers in the United States, towering already unsold stocks, because more complete no new China contracts. On March 1, 2016, there were so many supplies, such as for two decades no longer. In March, sorghum exported the United States still 497.335 tons to China, there were still 1,131 million tons in March 2015.
The supplies block the expensive silo now space and the upcoming large wheat harvest to space camp. The premiums for spot commodity (wheat and sorghum) has arrived in Kansas on a 6-year low. The USDA expects to the end of the next marketing period a Weizenendbestand of 1,029 billion Bardhan (= 280 million tons), that would be the largest stock of wheat in the United States since 1987-88.
