Transportation costs keep China’s corn prices high
Published
7/21/2014
Despite declining corn prices in the United States, corn prices in China continue to rise. Following years of increasing corn production, China has an abundant supply of corn available.
However, transportation costs from production areas to end-users make corn grown in China more expensive than corn imported from the United States.
China is selling corn at almost $155 more per ton than corn imported from the United States would cost. "Does China have a lot of corn? Yes. Is it expensive? Absolutely," said Kevin Roepke, U.S. Grains Council (USGC) director of trade development in China.
"If China end-users could import corn there is a...
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