Last week, China gave approval to at least two companies to export corn.
China is the number two corn producer in the world. This move will add even more corn to a saturated world supply and further depress commodity prices.
According to a story reported by Reuters, top grains trader Cofco and top processer Beidahuang will now enter the export market.
IL Corn continues to work through its membership organization (IL Corn Growers Association) and its checkoff board (IL Corn Marketing Board) to build demand for corn.
The association works legislatively, promoting trade among other policies. Passage of the Trans Pacific Partnership – which is negotiated and setting on a desk somewhere waiting for Congressional passage – would boost net U.S. farm income by $4.4 billion annually through increased market opportunities for ag products.
Another potential market poised to demand additional corn bushels is the ethanol market. Checkoff dollars are continually working to build infrastructure allowing more ethanol to be used domestically. Most recently, the IL Corn Marketing Board has helped to ensure that all new fuel pumps being installed will be certified to pump higher blends of ethanol.
Building demand is the fastest way to increase profitability for Illinois corn farmers.