USDA is looking at various policies to provide relief to the market with the U.S. dealing with the worst drought since 1956. Speaking at the U.S. China 30th Anniversary Summit in Bejing, China USDA’s Chief Economist Dr. Joe Glauber says they plan to stay the course on exports, but by law are required to consider a waiver of the nation’s renewable fuel standard. However, he says the market is already doing some of the heavy lifting in rationing demand for corn.
Glauber says as far as economic harm they are considering the impact the high price of feed is having on livestock producers and the herd liquidation that is taking place in response.
Glauber told Chinese officials that while their concerns about the drought are warranted there will be grain for export, just at much higher prices.
Extra cut on Chinese concerns about food security with the drought.