Caixin (December 23) reported that a rally in Chinese corn prices has spurred the government to take the unusual step of bolstering supply at a time when sales from farmers are poised to expand. The Chinese government disclosed a plan last week to resume state corn sales, the first time in years it is doing so during a seasonal peak period for farmers’ sales. On December 23, China’s top corn region of Heilongjiang followed with an offer to sell almost 1 million tons to designated buyers. These are on top of the 1.3 million tons already sold to refineries and feed mills in Jilin and Heilongjiang in the previous two weeks. China’s corn prices have rallied this year with futures in Dalian hitting a record at the start of December amid a need to feed a massive number of hogs as the nation’s herd recovers from African swine fever. Overseas purchases by the world’s second-biggest consumer have also surged.

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