China has made one of its biggest-ever purchases
of corn on overseas markets, buying 900,000 metric tons of American
corn and showing that growing Chinese demand will play an ever
larger role in global grain prices.
The U.S. Department of Agriculture said Thursday that China had
made the purchase, which comes despite an expected record grain
harvest in China this year.
Hanver Li, chairman of the market research firm Shanghai JC
Intelligence Co. Ltd., said Friday that the purchase was necessary
to replenish China's dwindling corn reserves.
He forecast that China will import between 7 and 10 million
metric tons of corn over the next 12 months.
He said China's rising imports will have a big impact on global
corn prices in the long run.