China’s Corn Surges on Stimulus Measures, Falling Imports

China’s corn futures rose the most in more than eight months thanks to a series of stimulus measures from Beijing that has boosted expectations for a demand recovery.

The most actively traded corn futures on the Dalian Commodity Exchange jumped as much as 1.9%, their biggest intraday rise since January. The rally was also supported by a fall in Chinese grains imports, which are expected to drop further in the fourth quarter after the government asked top traders to limit buying.

Three of China’s largest cities relaxed rules for home buyers, in Beijing’s latest attempt to revive its struggling economy. The raft of government measures unleashed in the past week has significantly lifted market sentiment and restored some investor confidence from stocks to commodities.

Corn prices in China have been under pressure from sluggish demand from the livestock sector and ample supplies. But as foreign arrivals tighten in the fourth quarter and demand improves, prices of the grain could stabilize, Holly Futures said in a note.

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Tags: futures, demand, China, corn, prices, imports