China is making big purchases of U.S. corn, but those purchases may be more political than fundamental-based. StoneX Group Chief Commodities Economist Arlan Suderman questions why this is happening now. “Why such a big sale that could risk doing something to the markets instead of doing this over a steady period of time? China has a history of making big purchase announcements at key times to influence politics. It could be that.” If this is the case, history shows poor follow-through on the actual shipments. Fundamentally, Suderman can justify large imports into China. “However, Communist Party leadership has control at the end of the day and they’ve been vocal in recent weeks about pushing the country toward self-sufficiency. I want to see purchase follow-through.”
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