Chinese feed mills bought six cargoes of U.S. corn for delivery starting in September as users lock in future shipments that are cheaper than shorter-term purchases, said four executives in the grains industry with direct knowledge of the transactions.
The cargoes include at least 120,000 metric tons bought last week and total more than 300,000 tons, said the executives, who asked not to be identified because the deals are private. Feed mills and large livestock producers in southern China are among the buyers, they said. The executives requested that the sellers and purchasers not be named.
Suppliers of U.S. corn quoted about $297 (1,849 yuan) a ton, or 2,100 yuan including import taxes, for arrival in southern China from September, they said.
September corn on northern China’s Dalian Commodity Exchange traded at 2,439 yuan a ton at 11:30 a.m. local time. The most active contract in Chicago, for delivery in May, traded $6.9725 a bushel, while the September contract was $5.7825 a bushel.
China bought a record of 5.23 million tons of corn from overseas in the marketing year ended Sept. 30, and shipments this year are forecast to fall to 2.5 million tons, according to the U.S. Department of Agriculture.