More reporting on China aiming to buy more crops for state reserves. China is looking to buy more than 30 million metric tons of crops for state stockpiles in a bid to avoid supply chain disruptions from COVID-19 and to meet its pledge buy more U.S. farm commodities, according to sources quoted by Reuters.
This follows reports Wednesday from JC Intelligence on the planned purchases for state stockpiles which also made reference to current prices as a factor in the apparent decision. The country plans to add 20 million metric tons of corn, 10 mmt of soybeans and 1 mmt of cotton to state reserves, with the bulk of those purchases coming from the U.S. as China strives to meet the terms of the Phase One agreement with the U.S. The report also said the country would seek to add 1 mmt of sugar and 2 mmt of soyoil to reserves, but did not indicate the likely source for those products. No indication on timing of the buys was given, with the report saying that would “depend on how the market evolves.”
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