China's purchase of a large consignment of corn from the United States led to higher prices

China's Purchase of another batch of U.S. corn was trading driver last week. According to USDA, during the week China has purchased 5.8 million MT of corn, which was the highest figure of the week.

With the start of the season, China has acquired of 17.69 million tons of U.S. corn, while the USDA estimated corn imports by China this season to 17.5 million tonnes in addition, in Ukraine and other countries, China can acquire another 5 million tons of grain. Now in the United States recorded the sale of 8 million tons of corn to an unknown destination, and analysts believe that this party can also be sent to China, but so far the system is not confirmed.

On the stock exchange in Chicago March corn futures on Friday rose 3.8% to new multi-year maximum of 218,2 $/t after the announcement of the purchase of 2.12 million tonnes of corn.

Experts explain the resumption of trading activity, China's desire to establish cooperation with new U.S. administration, which already announced plans to review relations between the two countries, in particular, plans to revise the first phase of the trade agreement between the US and China, signed by the previous President of the trump.

Press service of the White house said that "everything is entered in the previous administration will be reviewed, as it concerns issues of national security. Now their actions in relation to China, Washington will coordinate with its allies and partners."

In Ukraine, the price of maize at the port in the end of the week recovered to the level of the previous week 256-258 $/t or 8550-8650 UAH/t, but further price increases hindered low bid price on FOB basis and falling demand from China and the EU.

Due to the bad weather in the ports for a week Ukraine has reduced exports of corn doubled, to 319 thousand tons, but in the whole season shipped 11.4 million tons of corn, which is 27% below last year's pace.

the European Commission has lowered the forecast corn imports to the EU in the current season by 0.5 million tons to 18.5 million tons, and exports by 0.5 million tonnes to 2.5 million tonnes.

Russia since the beginning of the season exported only 1.3 million tonnes from the projected 4 million tons of corn, which is 27% below the corresponding period last year. It is expected that in anticipation of the introduction since March 15, the export duty of €25/t supply volumes will increase.

China, which is the main importer of corn, from February 11 will reduce purchases due to the long Christmas holidays, against the background of seasonal increase of offers from Ukraine and Russia will increase pressure on export prices for corn.