China bought 115,000 metric tons from U.S. exporters, the U.S. Department of Agriculture said, the largest reported transaction since 2001. The sales could pave way for more purchases by China, fueling a rally in Chicago corn futures. “Many more cargoes would come if everyone sees a smooth clearing at the Chinese customs for these first two cargoes.”
China will import 100,000 tons in 2009-2010, USDA figures show. “With this single purchase now surpassing that estimate, it stands to reason that purchases could continue until a larger crop is planted and viewed to be in favorable shape,” said an analyst at Morgan Stanley.
Louis Dreyfus & Cie sold two U.S. corn cargoes to private animal feed makers. The cargoes are scheduled to be loaded in late May and will arrive in China in mid-June, with prices ranging between $230 and $240 a ton after cost and freight, the executives said. Local prices are quoted at 2,000 yuan ($293) a ton, they said.