The Department of Agriculture has announced the export sale of 115,000 metric tons or 4.5 million bushels of U.S. corn to China. At the same time, U.S. Grains Council sources suggest six additional cargos of U.S. corn may have also been booked for China delivery. Those cargos would total 250,000 to 300,000 metric tons or 9.8-11.8 million bushels.
According to the U.S. Grains Council, the rapid growth of China's agricultural output has begun to be outpaced by demand. The convergence of China's demand and production, in conjunction with their dramatic economic growth, has likely encouraged China to open their markets to corn imports.
"Food security with our trading partners is dependent on continuous, transparent and stable trade relationships, said Thomas Dorr, USGC president and CEO. "We are hopeful the trade relationship with China will mimic the successful, longstanding relationships the United States shares with other parts of the world."
Meanwhile, as China opens their markets to U.S. corn, they have also imposed a second set of tariffs on U.S. chicken in less than three months as a consequence of an investigation that found subsidies have opened an unfair advantage for U.S. chicken producers over domestic chicken producers in the Chinese market.
These tariffs follow another set of tariffs implemented in February claiming U.S. chicken was being sold at less than market value to China. Both findings - one for antisubsidies and one for antidumping - remain preliminary, meaning that chicken producers will pay a deposit to cover the charges pending a final ruling