February 26, 2013
China feed mills buy 120,000 tonnes of US corn
As prices start to fall, China's feed mills bought at least 120,000 tonnes of US corn this week, in the first purchases made this year.
Two cargoes, each weighing 60,000 tonnes, are for delivery in September and October, and are priced between US$290 a tonne and US$300 a tonne, said the executives. More sales may have taken place, the executives said, citing conversations with other traders.
Corn futures have tumbled 19% in Chicago since reaching a record US$8.49 a bushel in August, on speculation that global supplies may increase as the US recovers from a drought. Futures have lost 7.1% this month and traded at US$6.8775 a bushel at 4:36 p.m. in Singapore.
China bought a record of 5.23 million tonnes of corn in the marketing year ended September 30, and shipments this year are forecast to fall to 2.5 million tonnes, according to the USDA.
