China vs Corn & Beans

I am not at all sure how China can curb the market price of corn.  Yes, they can control the price of corn that their farmers pay through price controls, however, if they need to import corn to satisfy demand, they the Chinese government would lose money subsidizing it by paying a higher price for imports and receiving a lower price from domestic consumers...


Once there is more clarity on the Ireland situation, I would say that corn, and perhaps beans should resume their upward trends - unless China stops buying, produces more, I cannot comprehend how this would not be so considering the supply situation... 

From Bloomberg:

Corn and soybeans fell to five-week lows in Chicago on concern that demand may wane as China, the biggest consumer of commodities, moves to limit speculation and inflation.

China is drafting measures to curb excessive price gains, Premier Wen Jiabao said yesterday, suggesting possible interest- rate increases and price controls. The Dalian exchange last week said it will curb “abnormal” trading to prevent price manipulation. The dollar has gained in two of the past three sessions, curbing demand for U.S. crops.

“Talk of China curbing speculation and a stronger dollar is working against the ags,” said Luke Chandler, global head of agricultural-markets research for Rabobank in London. “We still remain supportive of the grain markets. There’s just some momentum to the downside.”

The rest from Bloomberg:
Corn, Soybeans Slide to Five-Week Lows as China Moves to Limit Inflation