Today’s daily export sale of 2,108,000 MT of corn to China is the 2nd-largest daily corn sale on record since reporting began in 1977. This sale brings total daily sales of corn for the week of 1/25/21 to 5,848,000 MT. See the top 10 daily export sales at https://t.co/L5lKa4aOGZ. pic.twitter.com/cnZp4yISYW
Weinraub and Plume explained that, “Chinese buyers also picked up an additional 132,000 tonnes of soybeans – about two cargoes – for delivery in the 2021/22 marketing year, USDA said on Friday.
The country’s corn imports could climb to between 25 million and 27 million tonnes in the current crop year, including 18 to 20 million from the United States, president of AgResource Co, said on Wednesday.
“If realized, that would make China the world’s biggest corn buyer. In the 2019/20 marketing year, Chinese corn imports totaled just 7.6 million tonnes.”
Meanwhile, a report earlier this month (“Grain and Feed Update- China“) from the USDA’s Foreign Agricultural Service (FAS), stated that, “FAS China’s MY2020/21 corn import forecast remains at 22 MMT, still 4.5 MMT tons higher than the USDA official forecast due to continued strong import demand fueled by high domestic prices, the need and drive to restock grain reserves, and growth in feed consumption. China imported more than the 7.2 MMT tariff-rate-quota (TRQ) in calendar year 2020 with no slowdown in sight. It remains unclear if the 65 percent out of quota duty was applied to imported corn or if additional TRQs were quietly issued as official government agencies remain silent on the matter. In addition, there is rampant industry speculation of a ‘special TRQ’ that will be used for China to import U.S. corn to meet its purchase commitments under the U.S.-China Phase One Economic and Trade Agreement.”
And Bloomberg writers Isis Almeida and Alfred Cang reported on Friday that, “Earlier this week, the boss of Archer-Daniels-Midland Co., one of the world’s largest agricultural commodity traders, said the Asian nation [China] will import 25 million tons of corn from all countries. Ukraine is another big supplier of corn to China.”
Reuters writer Karl Plume reported on Wednesday that, “U.S. soy processors, fresh off their busiest year on record, have booked soybean purchases well beyond their normal few weeks of supply due to soaring export demand, rising prices, and fears of soy shortages later this season, traders and analysts said.
“The aggressive buying foreshadows an expected battle for beans between exporters and processors this spring and summer that will likely increase prices further and could result in rare imports to the United States, the world’s No. 2 soybean producer and exporter.”
Addressing some of the implications of the strong demand for corn and soybeans, Reuters writers Gus Trompiz and Sybille de La Hamaide reported last week that, “Expected record Chinese imports of corn and soybeans in the coming seasons will continue to absorb U.S. supplies and keep prices on an upward trend, Chicago-based consultancy AgResource Co said on Wednesday.”
Keith Good is the social media manager for the farmdoc project at the University of Illinois. He has previously worked for the USDA’s National Agricultural Statistics Service, and compiled the daily FarmPolicy.com News Summary from 2003-2015. He is a graduate of Purdue University (M.S.- Agricultural Economics), and Southern Illinois University School of Law.
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