ODA Market Alert: Chinese 🇨🇳 corn purchases continue to surprise… record levels breached.
Following on last week’s news that China had bought 1.7Mt of US corn, she came back to the market on Friday for an additional 2Mt. The volumes involved are very large indeed, and the market is having to re-think their real needs going forwards. Hog production is being ramped-up swiftly in China, drawing in additional feed needs. This, combined with lower than expected domestic production and very high local prices should continue to keep imports flowing. At present, though, the market is stunned by the scale of the purchases and prices are having to respond higher. US 🇺🇸 stocks of corn are dwindling quickly and delays to Brazil’s 🇧🇷 harvest means more pressure on US supplies. No doubt this will bring more support to world prices, including wheat.