China buys lower-cost ‘new crop’ corn from U.S.
After buying huge amounts of the 2020 U.S. corn crop, China bought a total of 3.74 million tonnes (147 million bushels) of American corn last week, all of it for delivery after this year’s crop is mature, reported the USDA. “New crop” corn was 80¢ to $1 a bushel lower in price at the Chicago futures markets than the 2020 crop.
USDA data show 11.736 million tonnes of U.S.-grown corn has been shipped to China with an additional 11.174 million tonnes booked for shipment during the current marketing year, which ends August 31. The combined 22.9 million tonnes are equal to one-third of estimated U.S. corn exports for the 2020/21 marketing year.
With last week’s activity, Chinese importers have purchased 5.1 million tonnes of U.S. corn for delivery after the Sept. 1 start of the 2021/22 marketing year. Private exporters also reported the cancellation of 280,000 tonnes of corn sold for delivery this marketing year. The United States is the largest corn grower and exporter in the world. China is the world’s largest corn importer and second in corn production.