May 12, 2020

China buys 686,000 tonnes US corn



According to the USDA, Chinese buyers bought 686,000 tonnes of US corn last week, reported Hoosier Ag Today.


Over 370,000 tonnes will be delivered in the 2019-2020 marketing year, with the rest going overseas in 2020-2021.


This seems to suggest that China is following through on its obligations in the Phase One trade deal. In a statement to Agri-Pulse last week, the US Grains Council says, "China's recent purchases of US corn place the country back in the top five markets for US corn, which is promising news for American farmers during this critical time. China has been a strong customer for US corn, sorghum, Dried distillers grains with solubles (DDGs), and ethanol in past years."


United States Grains Council (USGC) is hopeful that Chinese customers will continue finding a lot of value in US coarse grains and related products in the years to come. The purchase of 315,000 tonnes announced last Thursday was especially large, almost triple the export sales for 2020-2021 corn in the entire week of April 24-30. That was 97,500 tonnes to buyers mostly located in Japan and Panama.


Bryan Lohmar is the China Director for the USGC. He says, "We've already seen exports greater than the past few years, and China typically buys the most corn during summer months when its own supplies get tighter and domestic prices firm up."


China's corn-buying began back in March with a purchase of 756,000 tonnes, reported on the same day the Asian nation bought 340,000 tonnes of US wheat.