By Dow Jones
Corn futures have dropped 15% this year after falling 40% last year, and China's unwillingness to buy U. S. corn will further pressure prices, said Jason Britt, president of brokerage Central States Commodities Inc. in Kansas City, Mo. "China's [lack of buying] has been a contributing factor in these lower prices," he said. "Now, the job of the market is to go down to a level where we find demand. "It's amazing that China can overlook GMOs when stocks are tight, but when they're trying to protect their domestic farmers or they're in surplus, they can come up with things to mess with us-they're trade barriers, let's just call them what they are.
Official data show that China buys up one-third of corn production, while an estimate by state media said the government spent $36 billion in the last two years to buy up corn when the market price has fallen below a minimum floor. "The stockpiles are absolutely ginormous, way out of line with anything that you could justify holding onto on any sort of commercial basis," said Thomas Pugh, an economist at Capital Economics in London. "These are perishable goods, so they will start to deteriorate.
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