Daily Feed Grains: Chinese corn supply estimates dwindling

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By Commodity News Service Canada

WINNIPEG, Nov. 2 (CNS Canada) – Declining Chinese corn stocks may not be adding much support to the world feed grain market, as supplies remain large overall.
Corn futures at the Chicago Board of Trade were down for the fourth straight session on Wednesday, as the big US corn crop and losses in crude oil weighed on values.
However, feeder cattle futures in the US showed some modest strength on Wednesday, seeing some follow-through buying interest after jumping to their highest levels in one month on Tuesday.

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China accounts for some of the world’s largest demand for feed grains and is the world’s second-largest corn producer (after the US). While feed demand is still rising in the country, a recent private survey of Chinese farmers shows that supplies may be down on the year by over seven per cent. However, that may not lead to increased import demand, as the government is sitting on large stocks that are being released.
Feed barley bids in the key cattle feeding area of Lethbridge, Alberta were in the C$169 to C$175 per tonne range as of October 28, which was relatively steady compared to the previous week, according to the latest pricing information from the provincial government. Top end feed wheat prices also held steady, to range from C$188 to C$190 per tonne in Lethbridge.