The International Grains Council, estimating that China holds more than half the world’s corn stocks, has raised concerns over an imminent major shift in policy on the grain. A policy shift would address the issue of large, and rising, corn inventories in China encouraged by the government’s offer of a guaranteed price, which has risen to an average of some 2,250 yuan a tonne ($362) a tonne this year from 1,500 Yuan a tonne when it was implemented seven years ago.
Sugar output in Thailand is all set to create a record due to the recent rains defying a strengthening El Nino to boost cane-crop growth, according to official sources. The harvest may expand for a seventh year to an all-time high of 111 million metric tons in the season starting November, yielding 11.5 million metric tons of sugar. However, production is at a risk of falling short if drought persists. El Nino has kept central Thailand at its driest in about 30 years because of which sugar output in the world’s second largest sugar exporter may reduce.