Bloomberg writers Michael Hirtzer and Isis Almeida reported on Tuesday that, “China made its largest buy ever of U.S. corn in one other enhance to meeting agriculture targets set within the international locations’ first-phase commerce accord.
“The U.S. Department of Agriculture stated Tuesday that exporters sold 1.762 million metric tons of corn, the fourth-biggest spot deal ever for the grain. The company on July 10 reported a sale of 1.365 million tons to China.
“China is poised to meet or surpass import quotas set by the World Trade Organization for 7.2 million tons of corn from any country in a year. Beijing issued a new batch of permits that allow imports at lower tariffs. The Asian nation agreed to buy $36.5 billion in agricultural commodities this year from the U.S. as part of a trade accord, up from $24 billion in 2017.”
“China Books Record Deal for U.S. Corn, Stepping Up Buying,” by Michael Hirtzer and Isis Almeida. Bloomberg News (July 14, 2020).
“‘Right now, the purchases give the president something concrete to talk about in helping Corn Belt crop farmers, but I think the impact politically is pretty marginal at this point,’ University of Illinois agriculture economist Scott Irwin said in a message.”
Hirtzer and Almeida added that, “China’s imports of other raw materials from crude oil to soybeans surged in June as the economy started to recover from the worst of the virus.”
Reuters writer Mark Weinraub identified on Tuesday that, “China also booked deals to buy 129,000 tonnes of soybeans in the 2020/21 marketing year.”
“2020 Corn & Soybean Outlook Webinar,” introduced by Purdue agricultural economists Michael Langemeier and James Mintert. Purdue Center for Commercial Agriculture (https://bit.ly/2OnTKld – July 13, 2020).
“2020 Corn & Soybean Outlook Webinar,” introduced by Purdue agricultural economists Michael Langemeier and James Mintert. Purdue Center for Commercial Agriculture (https://bit.ly/2OnTKld – July 13, 2020).
More broadly, Wall Street Journal writer Jonathan Cheng reported that, “Chinese imports from the U.S. rose for the primary time because the new coronavirus emerged earlier this yr, showcasing Beijing’s post-pandemic buying energy at the same time as political rigidity between the world’s two largest economies continues to rise.
“China’s appetite for meat and other agricultural goods helped Chinese imports of U.S. goods to jump by 11.3% in June from a year earlier, after a 13.5% drop in May, data from Beijing’s General Administration of Customs showed Tuesday. The Chinese buying helped to narrow Washington’s trade deficit with Beijing from a year earlier, though Chinese exports to the U.S. also improved, rising 1.4% in June from a year earlier after a 1.3% decline in May.”
Meanwhile, Reuters writers Hallie Gu and Tom Daly reported this week that, “China’s month-to-month imports of soybeans leapt to a file excessive in June, leaping 71% from a yr earlier, customs knowledge confirmed on Tuesday, as a flurry of cargoes arrived from high provider Brazil.
“China, the world’s high importer of the oilseed, shipped in 11.16 million tonnes in June from 6.51 million a yr in the past and up 19% from 9.38 million tonnes in May, knowledge from the General Administration of Customs confirmed.
“Exports from Brazil have picked up since March after weather improved in the South American country.”
Also this week, USDA’s Foreign Agricultural Service (FAS) indicated in a report (“Brazil: Oilseeds and Products Update“) that,
China’s seemingly insatiate demand for Brazilian soybeans has been the principle headline, however maybe, the actual shock of this MY has been the exceptional efficiency of Brazilian transportation networks, which enabled this increase.
“From February through May 2020, Brazil shipped almost 47 MMT of soybeans, or over 40 percent more, than in the same timeframe last year, as well as, in the five-year average for this time period.”
Brazil: Oilseeds and Products Update. USDA- Foreign Agricultural Service. Report Number: BR2020-0030 (July 13, 2020).
Nonetheless, Bloomberg News defined this week that, “Intensive testing of meat, seafood and different merchandise for the coronavirus has tripled customs clearance instances at some main Chinese ports, elevating considerations the delays may ensnare world commerce flows.
“It normally takes about three days to clear the produce but is now taking as long as 10, said an official with Bojun Supply Chain Co., which provides buyers with customs clearance services on foods including frozen products.”
The Bloomberg article said that, “China had been boosting meat imports in a bid to offset shortages at home, after African swine fever outbreaks last year slashed the country’s herds. Meat and offal shipments surged to almost 900,000 tons in June, up 75% from year a ago, official customs data showed on Tuesday.”
Source: Keith Good, Farm Policy News