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China New Borun Corporation (BORN) Skyrockets, Alerting NYSE

  +Follow October 15, 2013 10:31AM
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The Chinese distiller China New Borun Corporation (BORN) saw its shares spike On Oct 14 as US corn exports to China continue to increase substantially. The rise was so precipitous, however, that it caused the New York Stock Exchange to contact the company over the "unsual activity."

Some rise in share price was expected. A few days prior, a private Chinese trading firm bought 420,000 tons of corn for delivery next year to take advantage of cheap prices, leading to speculation the corn processing industry in China will ramp up considerably as the country eases restrictions on corn importation.

The increased corn supply is great news for China New Borun. The company produces lower grade edible corn alcohol that is used to make cleaning solvents, crude corn oil, and the popular alcoholic drink baijiu. China New Borun currently has two manufacturing facilities, one in Shangdong province and another in Heilongjiang province that are jointly capable of producing 160,000 tons of corn-based edible alcohol per annum.

China has been loosening its restrictions on corn importation all year to cover supply shortages, as the country has already used up their domestic supply. The Financial Times reported in September that corn imports into the country were expected to increase from 3 million tons in the 2012-13 crop year to 7 million tons in 2013-14. The price drop in corn was fortuitous for the country, and they are currently taking advantage by amping up importation even more.

China New Borun had been down this year on less than stellar earnings. However, the increased importation of corn into China will almost certainly lower the company’s bottom line. The price of corn in China has been dropping steadily, from 2,346 yuan in July, to 2,272 yuan on Oct. 16, or $363.50 US a ton (around $9.10 a bushel.) Corn is currently $4.40 a bushel in the US.

While the Chinese government strives to maintain “self-sufficiency” with their crops and avoid excessive importation it has become clear the private traders have other ideas, and companies like China New Borun reap the benefits of the sudden influx of cheap US crops that will substantially lower costs going forward.

However, the sudden jump may have more to go on than just favorable crop conditions. Following the spike in price the NYSE contacted China New Borun, as is standard when a company’s shares elevate so suddenly. China New Borun, citing company practices, declined to comment on the unusual activity.

China New Borun is up 46.72 percent to hit $2.01 a share.   

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Results for BORN
Langan Stocks
24 Apr 15 15:19:38
$BORN Stock Message Board Updated Friday, April 24, 2015 6:03:17 PM $BCLI $UVXY $SH $XLB http://t.co/XlBzAnuOZH
PolgarStocks
24 Apr 15 15:19:37
$CYBR Stock Price Updated Friday, April 24, 2015 6:07:11 PM $BORN $SFUN $KO $THCZ http://t.co/W5uiJeIggq
IH News Desk
24 Apr 15 14:39:39
$PPCH Stock Forum Updated Friday, April 24, 2015 5:11:08 PM $XLB $HBI $BORN $GERN http://t.co/1lFtbQo45U
Rosner Stocks
24 Apr 15 14:19:09
$BORN Last Price Updated Friday, April 24, 2015 4:59:20 PM $UWTI $EPAZ $ADMD $DIA http://t.co/TkAq6MgaZp
Langan Stocks
24 Apr 15 14:18:19
$USO Last Price Updated Friday, April 24, 2015 5:03:16 PM $GM $BORN $PBR $GWPH http://t.co/bUOGrilwrL
Langan Stocks
24 Apr 15 13:17:14
$TWTR Stock Forum Updated Friday, April 24, 2015 4:03:21 PM $BORN $TWTR $SLV $HD http://t.co/OZ9PMEMG1g
Social Alpha Inc
24 Apr 15 12:30:24
Stocks buzzing on social media: $INFY $TCS $THRX $SOXX $FNF $BORN $STT $IMH Trade on market sentiment http://t.co/JXotpHpS8Z #tradeSentiment
PolgarStocks
24 Apr 15 12:16:42
$FXI Filings Updated Friday, April 24, 2015 3:07:16 PM $GLD $BORN $QLD $EWY http://t.co/ovmgxkft97
cjboro
24 Apr 15 11:55:39
@MONEYEMPIRE #BORNTOBEWILD $BORN
Oasis of stocks
24 Apr 15 11:54:51
$BORN on the verge of b/o imo. Watch for volume and 1.35 break on this one imo.
MoneyEmpire
24 Apr 15 11:50:48
@beach_trades NEXT WEEK THE BABY WILL BE $BORN
cjboro
24 Apr 15 11:44:17
$BORN Nice to see has CALPERS (California-Public Employees Retirement System) in it
Steve Feffer
24 Apr 15 11:42:26
RT @beach_trades: $BORN about to range break
cjboro
24 Apr 15 11:42:19
$BORN about to range break
IH News Desk
24 Apr 15 11:37:04
$THCZ Company Info Updated Friday, April 24, 2015 2:11:13 PM $BORN $GPRO $GS $PSEC http://t.co/prYnh6JYd8
cjboro
24 Apr 15 11:17:24
@danshep55 $BORN #radar
Langan Stocks
24 Apr 15 11:15:42
$GLD Financials Updated Friday, April 24, 2015 2:03:21 PM $BORN $WMIH $CRM $XLY http://t.co/FcmHUumohr
Langan Stocks
24 Apr 15 11:15:41
$EWD News Updated Friday, April 24, 2015 2:03:21 PM $ABC $UUP $BORN $GDXJ http://t.co/XG4H1P70dr
Rosner Stocks
24 Apr 15 11:15:38
$BORN Filings Updated Friday, April 24, 2015 1:59:25 PM $TALK $SLW $GLD $XLU http://t.co/YRaOidcXd3
cjboro
24 Apr 15 11:06:14
@oasis_of_stocks $BORN about to range break
PolgarStocks
24 Apr 15 10:15:10
$DUST Stock Forum Updated Friday, April 24, 2015 1:07:16 PM $BORN $NUGT $SFUN $GERN http://t.co/qCQJy8pQGF
IH News Desk
24 Apr 15 09:35:08
$UUP Recent News Updated Friday, April 24, 2015 12:11:12 PM $CVX $BORN $DUST $GPRO http://t.co/Wdfe9GyxBm
cjboro
24 Apr 15 08:41:21
$SEED $BORN $BSPM look ready today
IH News Desk
24 Apr 15 08:34:07
$VGGL Short Sales Updated Friday, April 24, 2015 11:11:10 AM $SBUX $GOOG $RIG $BORN http://t.co/Nu8tAQetwP
cjboro
24 Apr 15 08:02:30
@beach_trades $BORN time for #borntobewild
Langan Stocks
24 Apr 15 07:12:27
$BORN Investor Opinions Updated Friday, April 24, 2015 10:03:20 AM $AGEN $HD $AMRN $RSP http://t.co/sMuSPOSu36
PolgarStocks
24 Apr 15 06:12:39
$BORN Company Info Updated Friday, April 24, 2015 09:07:15 AM $MMM $NKE $FXI $FTNT http://t.co/xIR0eNt5q5
PolgarStocks
24 Apr 15 06:12:36
$ADMD Short Sales Updated Friday, April 24, 2015 09:07:15 AM $EBAY $SMN $BORN $TALK http://t.co/XisgoxA2t5
Langan Stocks
24 Apr 15 06:10:41
$HD Stock Price Updated Friday, April 24, 2015 09:03:20 AM $GLD $BORN $RSX $FSLR http://t.co/11cUqjcjon
IH News Desk
24 Apr 15 05:31:09
$AEM Company Info Updated Friday, April 24, 2015 08:11:11 AM $SBUX $BORN $GG $EWH http://t.co/XI7K1xSp0K
IH News Desk
24 Apr 15 05:31:08
$FXE Stock Forum Updated Friday, April 24, 2015 08:11:11 AM $DNKN $BORN $AMZN $XLE http://t.co/Sv11LJFgSZ
IH News Desk
24 Apr 15 05:31:07
$ZA Last Price Updated Friday, April 24, 2015 08:11:11 AM $VLTC $UNP $SPLK $BORN http://t.co/BrEQApny67
PolgarStocks
24 Apr 15 05:10:09
$KR Short Sales Updated Friday, April 24, 2015 07:07:14 AM $ZA $SPLK $CCJ $BORN http://t.co/tQyF3YqesI
Rosner Stocks
24 Apr 15 05:10:07
$BORN Stock Price Updated Friday, April 24, 2015 07:59:23 AM $GLD $GG $DIA $XLP http://t.co/6DjZ4gx4Gb
PolgarStocks
24 Apr 15 05:10:06
$SHY Stock Forum Updated Friday, April 24, 2015 07:07:14 AM $HD $XOM $FWDG $BORN http://t.co/eX4ifepDDR
Langan Stocks
24 Apr 15 05:09:49
$BABA Short Sales Updated Friday, April 24, 2015 08:03:19 AM $EWZ $BORN $NKE $BTU http://t.co/NQcgrcvGjC
IH News Desk
24 Apr 15 01:27:41
$HOG Financials Updated Friday, April 24, 2015 04:11:10 AM $BIDU $JNJ $BORN $FXI http://t.co/XIHgGaxIiB
Langan Stocks
24 Apr 15 01:06:37
$BCLI Filings Updated Friday, April 24, 2015 03:03:18 AM $BORN $MU $GILD $TEVA http://t.co/7GqVs7OecF
Rosner Stocks
24 Apr 15 00:06:38
$EWJ Stock Message Board Updated Friday, April 24, 2015 02:59:22 AM $IBM $MMM $BORN $VLTC http://t.co/iAkPPqYNYH
Langan Stocks
24 Apr 15 00:05:40
$WMT Stock Message Board Updated Friday, April 24, 2015 02:03:19 AM $GE $BORN $GPRO $VLO http://t.co/XVyBe0q42R
Rosner Stocks
23 Apr 15 23:05:43
$XLF Financials Updated Friday, April 24, 2015 01:59:22 AM $BORN $HZNP $GMCR $QLD http://t.co/7V140jPLRa
Langan Stocks
23 Apr 15 23:05:12
$VALE Recent News Updated Friday, April 24, 2015 01:03:17 AM $AAPL $DNKN $BORN $PSEC http://t.co/8A2QV1QtxG
IH News Desk
23 Apr 15 22:23:26
$CNET Investor Opinions Updated Friday, April 24, 2015 01:11:09 AM $DPZ $EA $QCOM $BORN http://t.co/9u9YhHqkqz
Rosner Stocks
23 Apr 15 21:59:29
$MCD Filings Updated Thursday, April 23, 2015 11:59:21 PM $HOG $XHB $XLI $BORN http://t.co/sZidtaPaWw
Langan Stocks
23 Apr 15 20:57:48
$TBT Company Info Updated Thursday, April 23, 2015 11:03:16 PM $CELG $BORN $CSCO $TLT http://t.co/MRD2Zq23lv
PolgarStocks
23 Apr 15 19:54:05
$JNK Opinions Updated Thursday, April 23, 2015 10:07:17 PM $XLE $XLK $BORN $SLW http://t.co/JDHxMLtOzU
cjboro
23 Apr 15 19:41:39
@beach_trades $BORN 5.7% #Illtakeit
Rosner Stocks
23 Apr 15 18:48:09
$MDY Stock Message Board Updated Thursday, April 23, 2015 8:59:23 PM $EFA $EBR $BORN $CAT http://t.co/kXc9tokIwd
Rosner Stocks
23 Apr 15 18:48:05
$BORN Percent Change Updated Thursday, April 23, 2015 8:59:23 PM $AMRN $FXC $TIP $RIG http://t.co/CszlrKefxp
Langan Stocks
23 Apr 15 18:47:55
$ENZN Short Sales Updated Thursday, April 23, 2015 9:03:18 PM $CCJ $BORN $ZIOP $SLTD http://t.co/g18B9CtlNB
				
				
  +Follow October 15, 2013 10:31AM
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