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China’s corn imports from the US would total 30 million tons

China’s corn imports from the United States would total 30 million tonnes next year, the Food and Agriculture Organization of the United Nations (FAO) said.

According to the FAO, these higher corn imports are expected to put pressure on world cereal prices.

The state-owned food giant Cofco Corp. has sold 10 million tonnes to domestic private factories and will likely further boost purchases in the United States, FAO added, citing people familiar with the matter as sources.

This could direct China’s corn imports from the US crop to 30 million tonnes next year.

The purchases, in addition to China’s annual corn import quotas, could boost Chicago futures, which are already trading near their highest level since July last year.

Grains have been rising amid robust Chinese consumption, with domestic corn prices nearing a record high as demand for pig and poultry feed increases and state reserves dwindle.

China’s corn imports from the United States rose to a record in 2020.

Investors and producers are also following China’s progress in fulfilling its commitment to buy $ 36.5 billion worth of American agricultural products this year and $ 43.5 billion in 2021.

Corn imports

As part of that deal, U.S. grain imports have soared in recent months as the economy has strengthened and China rebuilds a herd of pigs that was decimated by African swine fever.

The nation assigns annual corn import quotas to state and private companies.

At times, Cofco may receive an allowance to buy additional quantities and resell domestically to private factories or to replenish state reserves.

The jump in shipments has sparked speculation that China could become the world’s largest corn importer.

While the United States Department of Agriculture estimates that China could buy 22 million tons of corn in the 2020-21 season, Goldman Sachs Group Inc. said shipments could increase to 33 million tons in 2021.

 

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