September 14, 2020

USDA: China's demand for corn and soybeans remains strong

United States Agriculture Department (USDA) data showed China has maintained is strong demand for US corn and soybeans, with traders projecting the US government to increase its export forecast for corn and soybeans soon, Reuters reported.

US corn export sales to China reached 1.137 million tonnes, while soybean export sales hit 1.608 million tonnes in the week ended September 3. 

The data also showed private exporters reported 262,000 tonnes of soybeans were sold to China.

China has increased its US corn purchases as it expects a domestic corn shortfall.

Arlan Suderman, chief commodities economist for broker StoneX, said the USDA is expected to cut the size of corn and soybean crops this year, while also boosting demand projections because of China's increased purchases.

China's increased purchases comes as part of its pledge in the US – China Phase 1 deal signed earlier this year to buy US$36.5 billion of US agricultural goods annually. US Census Bureau trade data showed China's purchases between January to July 2020 reached US$8.559 billion.

-      Reuters