China makes largest-ever purchase of US maize

Fuelling speculation about tightening global maize supplies, maize futures in the US rose more than 2% in the last week of January to set a multi-year record after China made its largest purchase of US maize to date.

In addition, wheat futures also rose about 2%, while soya bean futures firmed as well.

For the month of January, maize futures on the Chicago Board of Trade rose US$63c/bushel (about R371,29/t), or 13%. According to Reuters, the latest increase in maize futures followed confirmation by the US Department of Agriculture of private sales of 2,1 million tons of US maize to China.

It was the second-biggest daily sales announcement for maize on record, eclipsed only by a deal for 3,72 million tons to the Soviet Union in 1991.

The latest sale followed deals earlier that week for a combined 3,74 million tons of maize from the

US. Already the world’s top soya bean importer,

China was buying maize in an effort to rebuild that country’s massive pig herd.

Chinese maize imports could increase to between 25 million and 27 million tons in the 2020/2021 season, including buying up to 20 million tons from the US, Dan Basse, president of Chicago-based AgResource Co, told Reuters. – Staff reporter

PIXABAY Record-high volumes of maize being purchased by China has fuelled fears of maize shortages going forward.