August 19, 2020

 

China purchases 195,000 tonnes of US corn as domestic prices surge

 


The United States Department of Agriculture (USDA) said purchasers from China bought 195,000 tonnes of US corn, as corn prices in China continue to rise, Reuters reported.

 

There is increased demand for livestock feed as China's swine herd is recovering faster than projected. Additionally, major chicken producers in China are massively expanding operations.

 

Corn inventories in China has dropped after the government implemented measures to reduce its once massive stockpile.

 

More corn imports from the US could help China achieve its US agricultural goods purchase pledge as agreed in the US – China Phase 1 trade deal signed earlier this year.

 

China is currently far from fulfilling its pledge of US$36.5 billion worth of US agricultural goods purchases. Data from the US Census Bureau showed from January to June 2020, China imported US$7.274 billion worth of US agricultural goods.

 

The last US corn exports to China was on July 30 according to US data, when 1.937 million tonnes were purchased for a record one-day sale.

 

USDA data showed in the first six months of this year, China imported 404,760 tonnes of US corn, higher than the 194,503 tonnes purchased in the same period last year.

 

The USDA also announced 130,000 tonnes of US corn and soybeans were sold to unknown purchasers.

 

-      Reuters