China adds another 1.36 million mt of new crop US corn to its slew of recent purchases: USDA

New Delhi — The US Department of Agriculture released a private exporter sales announcement that showed 1.36 million mt of corn sold to China for delivery during the 2021-22 marketing year (September-August) on May 19, adding to the announcement of around 7.5 million mt of new crop corn sold in the last eight days.

China's total bookings for the new crop corn from the US stand at 9.52 million mt for 2021-22, around 36% of its estimated imports for 2021-22. The USDA has estimated China's corn imports into 2021-22 at 26 million mt, steady at the record-high estimates seen for 2020-21.

Export announcements for new crop US corn were also made on May 11, May 13, May 14 and May 17 as well.

The strong sales commitments for the 2021-22 marketing year have confirmed that strong Chinese demand will continue, sources said.

While new sales have been supportive, traders continue to watch weekly export inspection data closely as Chinese buyers still hold over 11 million mt in outstanding sales for old crop.

Demand and export trade activity for exports has shifted focus to new crop shipments as a strong inverse in futures prices made forward purchases more appealing. CBOT corn futures prices have come down from their contract highs in the last week, but still hold a strong inversion with the July contract at an almost $1.20/bu premium to the December contract.

New crop corn in the US will be harvested during September-October 2021. As of now, planting for the 2021-22 corn is ongoing in the US and 80% of the corn was reported planted as of May 17, ahead of the five-year average of 68% for the period.

The USDA sees US corn production in the 2021-22 marketing year at 14.99 billion bu, compared to 14.18 billion bu estimated for the 2020-21 marketing year, it said in its World Agricultural Supply and Demand Estimates May 12.