Several Chinese animal feed producers are negotiating with their suppliers to sell back U.S. corn cargoes for shipment in 2012–2013 in order to profit from record-high prices, according to reports.
The producers originally bought the corn at prices below $6 per bushel, and current prices are well above that. "We are still talking about washing out the cargoes," said a trade source. "It is good for both sides." The worst U.S. drought in 56 years is hampering potential yields and causing prices to continue climbing.
Ninety-seven compound feed manufacturers produced volumes over 1 million metric tons, according to World’s Top Feed Companies report.
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