The National Development and Reform Commission of China has announced the country will move to more market oriented pricing on corn procurement. U.S. Grains Council Chairman, Alan Tiemann, who farms in Nebraska, says it may take some time for the Chinese to go in that direction and he’s not sure what the impacts will be.
Tiemann says on the surface it seems positive, but for the near term it could be negative.
In the past, China has distorted its markets with internal price supports for corn, coupled with quotas and non tariff trade barriers to corn imports. Tiemann says they hope to know more later as Grains Council Executive Director, Tom Sleight is headed to China this week.
