China breaks own 2 week-old record with latest U.S. corn purchase
China’s latest purchase of U.S. corn broke a record set just two weeks ago.
USDA data shows a sale of 1.937 million metric tons, eclipsing the previous high of 1.762 million July 14th.
University of Illinois ag economist Todd Hubbs tells Brownfield exports are critical as the corn market suffers from reduced ethanol demand.
“As tends to be the case when we have these large supplies. And hopefully some of these lower prices we’re seeing can incentivize more overseas buyers to come into our market.”
He’s also cautiously optimistic China returns to being a major player for U.S. ethanol and Dried Distillers Grains exports soon.
“We don’t have as real time of data on distillers grains and ethanol, but you’d have to assume they may be in those markets as well. And they haven’t really been large buyers of ethanol or distillers grains for a couple years now, and that could provide a boost if we see them come into those markets.”
Hubbs says while that wouldn’t be enough to offset losses in demand tied to COVID-19, it would be better than nothing.