China ups corn purchases to one million tonnes

China bought six cargoes of corn from the US, or 360,000 tonnes, bringing purchases to 16 cargoes, or almost one million tonnes, industry executives said.

State-owned Cofco Ltd. bought three shipments to sell to feed mills, while Jilin Grain Group Co. and two private buyers in southern China bought one each. Each cargo weighs about 60,000 tonnes.

China has booked the most corn imports in 14 years, and is draining domestic stockpiles to cool an 18% gain in local prices in the past year. The gap between local and global prices is narrowing, signalling imports may slow.

''A reasonable assumption for this year's imports is between one million and two million tonnes. The overseas market had initially exaggerated purchases,'' said Yu Xiaomeng, an analyst in Beijing.

Local prices had ''risen too wildly'' and the government has reduced them to a more acceptable level for policymakers and livestock farmers. The outlook for improved crops and the regular offering of state stockpiles have kept users from seeking to boost inventories.