Chinese Corn Purchases Sets Records as Tensions Grow

Chinese buyers made a record purchase of U.S. corn last week. Reuters says that extended a recent flurry of U.S. purchases as tensions continue to grow between the two largest economies in the world. The USDA says China bought 1.937 million tons of corn from private exporters that will be delivered in the 2020-2021 marketing year. That purchase is worth around $325 million and passed up the previous record of 1.76 million tons reported only two weeks ago. In another report, the USDA says soybean sales to China rose to 1.925 million tons for the week ending July 23, which was the biggest weekly total since November of 2016. China’s purchases of American farm goods totals $6 billion through May, while the Phase One Trade Agreement calls for a total of $36.5 billion in purchases this year. While the $6 billion total is 9.1 percent higher than the same period last year, it’s also 31 percent lower than the same time in 2017. Rising tensions had already slowed soybean purchases last week. U.S. Soybean Export Council CEO Jim Sutter says, “Chinese buyers are worried about a possible disruption in the implementation of the Phase One agreement, which is certainly not good for future purchases.”