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How Much Corn Is China Buying?

On the face of it, today’s weekly export sales report from USDA looked bearish for corn. The government said cancellations caused net sales for the last full week of the 2010 crop marketing year to be negative, down 12.6 million bushels.

But two of the loads that were booked and perhaps immediately shipped were headed to China, switched from “unknown destinations.” That raised hopes a good chunk of the 25.75 million bushels of new crop booked by “unknown destinations” could also be headed to China.

While the Chinese expect record corn production this year, their hog sector is booming, creating a small, but not insignificant demand for imported corn. If that trickle grows into a steady stream it could have important ramifications for the future of U.S. corn demand.

There were no old crop soybean sales reported as the end of the marketing year approached, with China still focusing on South American supplies. Still, two loads of old crop were shipped to China, which continues to dominate new crop business. Total sales for the week came in at 21.8 million bushels, above the average trade guess.

Wheat sales of 13.6 million bushels were below trade guesses and the weekly rate forecast by USDA, as competition on the world market remains intense. All the business came in single loads, with buyers looking like they’re only in for hand-to-mouth purchases.

For the complete export report, click here.