July 29, 2010

US corn satisfies Chinese quality standard

American corn imports have met China's quality standards, according to an official from Cofco.

Chinese mills complained about the quality of US corn, the state-backed China National Grain & Oils Information Centre said, without citing anyone. While some of the grain was damaged by heat, that would not affect its usage, said the Cofco official directly involved in a shipment. He declined to be identified by name because he is not authorised to speak to the media.

Four US corn cargoes, each weighing about 60,000 tonnes, reached China since June, said the Cofco official, who handled a shipment at Shekou port in southern China and sold it on to about 20 buyers. More than 10 cargoes are scheduled to arrive in southern China in the next several weeks, he said.

China ordered 1.2 million tonnes of US corn as of July 15, the most since the 1990s, according to USDA data. The US is expected to export 49 million tonnes of corn in the 12 months ending in September, the USDA estimates. Corn traded in Chicago, a global benchmark, advanced 7.1% since April 27, a day before the USDA reported the first corn sales to China by US exporters since 2001.

While last year's US corn crop was of a lower-than- average quality, the new crops coming soon should not have these quality issues, said analyst Li Qiang.