China is ranked number two in the world in corn production and consumption. In order to support and provide income to farmers, Chinese government buys corn on the domestic market at prices that are well above global, and sells it to domestic consumers. Such practice leads to accumulation of excess stocks of grain by the State Fund, since because of the high domestic prices for corn some Chinese consumers prefer to purchase it on foreign markets. China’s high corn yields in the past few years complicate the situation even further.