China bought more than 1.2 million metric tons of U.S. corn on Wednesday. This purchase is larger than Tuesday’s sale and the second largest corn sale on record. Stone X Group Chief Commodities Economist Arlan Suderman says the purchases are a fascinating study of what China is doing. “We’ve been saying for some time China had a deficit of 30 million metric tons of corn, but since that time they’ve been hit by another round of African swine fever, reducing demand. Yet, their corn and wheat prices are high. They already released a large amount of their wheat reserves and the majority of that is used for feed.” To this point, China has booked roughly 21 million metric tons of U.S. corn during the current marketing year, taking shipment of less than eight million metric tons.
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