June 14, 2010

Chinese traders bought at least two more cargoes of US corn after the initial confirmed 10 cargoes of imports, as prices on the Chicago Board of Trade tumbled recently, traders said Friday (Jun 11).

Importing one tonne of US corn now has a profit of more than US$20, and Chinese companies are likely to buy more due to the attractive prices, said a trader with a big local importer.

A corn processor in Shandong province signed a contract to import a cargo of US corn last week, with many other feedmill companies willing to buy more, China National Grain and Oils Information Centre said in its note.

The trader added his company was also likely to import more corn.

Corn prices in some areas of China have began to fall in recent weeks, after the government acted to curb a surge in prices, while processors and traders possess plenty of stocks which were bought earlier amid expectations of tightening supply.

Big corn processors in Shandong province have stocks to last for more than a month of production, while some mid- and small-sized feedmill companies have even stopped buying due to ample stocks, CNGOIC said.