Feed costs remain volatile in 2004 -- Tight world stocks keep Northeast feed costs high

摘要

World corn stocks fell to 30-year lows in 2003, while domestic soy-bean stocks grew extremely tight. China aggressively bought soybeans last fall, driving prices to six-year highs. Corn prices rallied despite a record harvest, as traders anticipated declining competition from China on the world market. China is the most significant factor impacting the 2004 feed price outlook. Its hunger for oilseeds repeatedly outpaces USDA expectations. On the other hand, the scope of its corn exports will directly impact demand for U.S. exports into the expanding Southeast Asian market.