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Economist says changes in China should lead to more corn sales

An agricultural economist says China will continue to buy corn, even though sales were flat for several weeks.

Daniel Basse with AgResource Company tells Brownfield there are reasons behind China’s corn buying spree, including a structural change to their pork production system. “It’s something that was largely missed by the markets and then started to be come evident was that China, back in September, banned the feeding of what we call food waste or anything like bakery goods or restaurant refuse because of the concern that it would spread African Swine Fever to their hog herd.”

Basse tells Brownfield this removed 30-million tons of feed from the Chinese hog farms, so he expects China will be buying corn beyond this year. “This will last for three to four years or until the world finds another, let’s call it 10 to 12 million acres at current yields.”

Basse says the three Chinese corn purchases within a week can also be a goodwill sign as negotiators from the two countries meet in Alaska to discuss trade issues.

Basse spoke to Brownfield at the Professional Dairy Producers business conference In Wisconsin Dells, Wisconsin.

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