China Accelerates U.S. Corn Buying With Record Purchase
China took another step toward meeting agricultural commitments made in phase one trade agreement with the U.S.
(Bloomberg) -- China took another step toward meeting agricultural commitments made in the phase one trade agreement with the U.S. with its biggest-ever purchase of American corn.
China has boosted its imports of animal-feed ingredients as relations soured with barley-shipping Australia. Stepped-up buying of U.S. corn began in March. About 1.3 million tons of American corn was sold in the season ending on Aug. 31 while about 5.72 million tons was sold to be shipped in the next season, including Thursday’s announced sale, USDA data showed.
That puts China on a path to meet or exceed the World Trade Organization’s quota of 7.2 million tons of corn imports from any country in the year.
China is still on the line for $36.5 billion in U.S. agricultural goods as part of a trade accord, up from $24 billion in 2017. Although the accelerated purchases will push the nation closer to that target, they might not provide enough momentum to reach the figure.
While the deals could help President Donald Trump shore up support from farmers ahead of the November election in the crucial farm- and rust-belt states, the reaction in the Chicago futures market has been relatively muted.
Corn for December delivery jumped as much as 1% before paring gains. Prices were holding near the lowest in about a month, with favorable U.S. crop conditions likely contributing to a large surplus.
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