[Listen] Gordy Ag Market Recap Huge China Corn Purchases
It was a little discouraging that corn set new contract highs in the nearby March contract two different times and could not hold. Plus, it was last week corn hit a new contract high and did not hold either. China so far this marketing season has been buying large amounts of U.S soybeans. Well, this week the USDA announced a daily sale of U.S. corn to china three days in a row. The volumes were amazing! This last week China purchased 240 million bushel of U.S corn.
So far this marketing year China had been buying a lot of U.S. beans and corn was pretty much a follower. Now corn is the leader and beans are the follower. I guess it is hard to sell and export more beans when you don't have any more to sell? I read a report late this week with an analyst saying U.S. exporters would not commit to selling any beans or products this summer because we would be out of beans. Plus, the U.S. would need to import as much as 70 million bushel of beans from South America.
Click on the link above and listen to Gordy discuss the grain and livestock market action last week.