Corn export premiums at the US Gulf Coast rose on Friday, supported by strong export demand highlighted by the second large sale to China in three months, traders said. China bought as much as 1.6 million tonnes of old- and new-crop US corn this week to replenish reserves.
USDA said on Friday that private exporters reported 360,000 tonnes in old-crop sales and 780,000 tonnes in new-crop sales to an unknown buyer, which traders said confirmed the reports of sales to China. More large sales to China were likely after sharp drops in prices on Thursday and Friday, but none were confirmed, traders said. Other buyers in Asia expected to increase corn purchases after the late-week plunge in futures.
Spot corn futures on the Chicago Board of Trade hit a three-month low this week and were down 4.4 percent for the week. New-crop December futures fell 5.6 percent in the week, closing below $6 a bushel for the first time since March.
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