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CME Group describes how CBOT and Dalian corn futures trade as highly liquid markets with very different participation. The piece notes China holds an estimated 103 million MT of corn stocks against annual production of about 218 million MT and consumption of 226 million MT.
It also says the two contracts have shown little price correlation over the past decade.
The analysis shows that Chinese domestic corn prices move largely independently of CBOT futures, which limits how much Chinese stock levels transmit to US feed corn prices. Buyers should not assume China's surplus stocks will directly pressure CBOT corn.
cmegroup.comDec 2, 2016Not 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.
