Volga Baikal AGRO NEWS Update on the International Corn Sales !!!
China makes its largest U.S. corn purchase ever, prices shoot up.
Corn prices climbed double digits on Tuesday (January 26, 2021). The market was fueled by news China made its biggest buy of corn in six months.
“53.5 million bushel corn buy all at once is the biggest sale that would have corn that we’ve had to China’s since July,” – says Arlan Suderman of Stonex Group. “It’s pretty significant and helps explain why we saw the big run up in prices on Monday (January 25, 2021) with some follow through today (January 28, 2021).”
Ed Hubbard, general counsel and vice president of government affairs with the Renewable Fuels Association (RFA), thinks it’s no coincidence that this large purchase comes on the heels of the Biden inauguration last week. Suderman also thinks the timing is key.
“I think one of the big questions has been will China test the Biden administration as they test many administrations when they come in,” – says Suderman. “It looks like they’re starting off with throwing the Biden administration a carrot. It looks like they’re going make some purchases of ethanol, which were rumored last week already, and also a big purchase of corn to try to influence the Biden administration in a positively.”