China puts US tensions aside to boost phase one trade deal, food security with record corn purchase
- China bought 1.762 million tonnes of corn for delivery in the 2020-21 marketing year beginning in September, which was its largest-ever daily purchase of US corn
- It has also bought large quantities of soybeans amid a backdrop of escalating tensions over the coronavirus, Xinjiang and the national security law in Hong Kong
China has been able to put aside its growing tensions with the United States at least in the area of agricultural purchases, with a record purchase of US corn reinforcing the phase one trade deal as well as Beijing’s need to bolster its food security.
The US Department of Agriculture (USDA) said on Tuesday that China bought 1.762 million tonnes of corn for delivery in the 2020-21 marketing year beginning in September, its largest-ever daily purchase of US corn and the fourth-largest US sale overall.
Having started to make purchases in March, China has ramped up its purchase of US corn since the start of July, having not made any in June, placing orders totalling 4.19 million tonnes this year for delivery over the next two years.
China also bought 1.17 million tonnes of US soybean this month, after having bought the same amount in June, according to data from the USDA.
Fulfilment of the phase one deal is one reason. Besides, the Chinese government also has the intention to import US corn to replenish state reserves since destocking is taking place faster than expected
