China: Chinas early grain purchases for next campaign show unchanged large import need
China is the largest grain and bean buyer of the world, by far. Its purchases since the late last year have driven prices to record levels, H. M. Gauger GmbH said in their April report.
China sold out its reserve stocks of corn to the domestic market, followed by 43 mln tonnes of reserve wheat. The Dalian corn market rose to the equivalent of almost US$440 before falling back to US$400 in early April, local sources report.
China purchased 30 mln tonnes of U.S. corn/sorghum combined and 5.3 mln tonnes of Ukrainian maize.
Barley imports as of early April added up to 8.3 mln tonnes from the 4 permitted suppliers. Further old crop shipments will follow from Argentina and Canada, less from France and Ukraine. The crop year imports ought to reach 10 mln tonnes, the Gauger analysts believe. Reported new crop sales from the same origins total 4.7 mln tonnes.
After the Chinese New Year domestic markets consolidated, grain and bean procurement came down to a drizzle, world markets became nervous, the bull dynamic made room to a nervous yoyo game. Early purchases for the next campaign, however, are a sign of an unchanged large import need in the future.
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