The United States sold 1.25 million tonnes of US corn to an unspecified buyer, believed to be China, ending a week of speculation that roiled the markets in the absence of a confirmation until Friday. The US Department of Agriculture said 1 million tonnes would be shipped in the current marketing year ending August 31, and the rest in the next season.
It was the sixth-largest single-day sale of US corn on record and, based on current futures prices, was worth $350 million. Benchmark US corn futures on the Chicago Board of Trade climbed 2 percent to a near-three-week peak of $7.17-1/4 per bushel at the open before drifting down from their highs as investors booked profits.
China made its first large US corn purchases in four years last April, ultimately buying nearly 1.5 million tonnes from the United States, the world's largest exporter of the grain. Sales, however, had stalled since October. The USDA has officially forecast China's corn imports in the September 2010-August 2011 marketing year at 1 million tonnes, but a USDA attache in Beijing said more recently that 2010/11 imports could total 1.5 million tonnes. China has already imported about 300,000 tonnes of US corn this marketing year, shipped in September and October, so another 1 million tonnes of old-crop imports would necessitate a revision of the USDA forecast.
Rumours that China had purchased a large volume of US corn began late last week and sparked a two-day, 11 percent rally in corn futures. The market stagnated early this week amid a lack of USDA confirmation of the sales before spiking again on Thursday on renewed speculation that sales had been done.
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