1. How to calculate the substitution of American corn for China?
China's corn futures trading unit is 5000 bushels, and the quotation unit is cents/bushel. The contract price of 65438+February is 6 1 1.2 cents/bushel, and the value of primary futures contract is 611.2100 * 5000 = $30560 = 1.
Second, why is the price of corn in America so low?
1, and the production cost is relatively low. At present, the United States is the second largest corn planting area, second only to China, but its output ranks first in the world, accounting for more than 34% of the world's corn production. The corn production in the United States basically adopts large-scale mechanized production, and there are many agricultural science and technology companies in the United States, and their corn production is also relatively large; In addition, the United States has established a relatively complete system from planting to purchasing to transportation, so on the whole, the unit yield cost of corn in the United States is relatively low.
2. There are government subsidies. American agricultural products have certain advantages in yield and price, but at present American agricultural products still enjoy preferential government subsidies, including direct subsidies and some indirect subsidies.
3. The market demand is weak. The price of corn in the United States has been in a relatively low state in recent 1 year, which is mainly related to market demand. After all, as the world's largest corn exporter, the international corn market demand has a great influence on the US corn price. In recent two years, the international corn demand has shrunk relatively, so it is normal for the US corn price to fall.
From a global perspective, the price of corn in the United States should be at the lowest level in the world, so they have great advantages in export. But in order to prevent the United States from dumping at a low price, some countries will raise import tariffs on corn.