China Purchases More U.S. Corn as Fears of Shortages Increase

Private exporters report more large sales of U.S. corn to China. On Wednesday, USDA reported two large export sales, one of 420,000 metric tons and another totaling 264,000 metric tons for the new 2020-21 crop year.

China needs to continue increased corn purchases to reach the lofty targets included in the Phase One agreement with the United States.

However, China is still behind pace to do so this year. There are increased fears of corn shortages in China.

Corn futures hit a new record-high this week of 2,595 yuan, valued at $385.14 per metric ton. China’s corn output is expected to fall this year after typhoons flattened crops in some parts of the country, further stoking supply concerns after Beijing ran down its massive state stockpiles over the last several years, according to Reuters.

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