China buys the largest daily amount of corn from the US in almost a month

The US Department of Agriculture (USDA) reported on Tuesday, August 25, that Chinese importers bought more soy from the United States and recorded their largest daily purchase of US corn in almost a month. The acquisitions came as Washington and Beijing reaffirmed their commitment to the Phase 1 trade agreement.

In a daily report on exports, the USDA reported that the Chinese bought 408,000 tonnes of corn and 204,000 tonnes of soy from the United States, both for shipment in the 2020/21 business year, which begins on September 1.  Corn sales have been the biggest since July 30, when nearly 2 million tonnes were announced as having been exported to China.  Sales to China came after major US and Chinese trade officials said they remained committed to the trade agreement signed in January that provides for a significant increase in Chinese imports of American agricultural products.

However, Chinese purchases remain well below the pace needed to meet the first-year target of US$36.5 billion specified in the agreement, according to official data, even after a recent increase in purchases.  The United States exported just US$7.274 billion in agricultural products to China in the first half of the year, according to trade data from the Census Bureau.  US soy exports to China typically increase in the fourth quarter of the year, after US crops are harvested and supplies from the main exporter, Brazil, have declined.

It is worth noting that Chinese soy imports from Brazil jumped 27% in July compared to last year, as cheap shipments purchased in recent months arrived in the country.  The graph below shows Brazilian soy exports to China per month since 2017:

Brazilian Soy Exports to China | Jan 2017 to Jun 2020 | WTMT

Chart source: DataLiner

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Source of report: Reuters

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