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China's agriculture ministry is promoting cheaper feed alternatives to corn and soybean meal amid tight global supplies and higher prices. New guidelines for feed manufacturers recommend wheat, barley, sorghum and rice as corn substitutes, and distillers dried grains, cottonseed meal and sunflower meal as protein replacements for soybean meal.
Substitution away from corn and soymeal by the largest buyer reduces import demand for those feeds and may cap their prices, while lifting demand for wheat, barley, sorghum and rice feed grains.
rrfn.comDon WickApr 21, 2021After 182 past bullish policy events, WHEAT moved a median +0.1% over 5 sessions (52% higher; middle half -1.9% to +1.4%), and -0.3% over 20.
Not enough comparable past events yet for a historical read.
After 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.
Not enough comparable past events yet for a historical read.
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.
