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China's Ministry of Agriculture and Rural Affairs issued guidelines recommending lower corn and soymeal use in pig and poultry feed. The guidance encourages substitutes such as wheat, rice, barley and sorghum.
Feed makers were already switching to cheaper alternatives.
Lower corn and soymeal inclusion would reduce China's import demand from the world's largest buyers, weighing on corn and soybean meal prices. Substitution toward wheat and other grains would shift feed demand across grain markets.
reuters.comHallie GuApr 21, 2021After 310 past bearish policy events, Corn moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.6% over 20.
After 369 past bearish policy events, Soybeans moved a median -0.2% over 5 sessions (46% higher; middle half -1.7% to +1.8%), and +0.8% over 20.
After 223 past bearish policy events, Soybean Meal moved a median -0.3% over 5 sessions (45% higher; middle half -2.2% to +1.2%), and -0.6% over 20.
After 182 past bullish policy events, Wheat (SRW) moved a median +0.1% over 5 sessions (52% higher; middle half -1.9% to +1.4%), and -0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
