China makes record grain purchases amidst largest 3-year global price drop

Bloomberg reports.

China has purchased corn, sorghum, and barley from suppliers in Ukraine and the United States. The total volume of purchases exceeds 1.2 million tons of grain, with each batch consisting of 60,000 tons.

The cause of the frenzy was the price increase in China and the drop in corn futures in Chicago to the lowest level since 2020, driven by a large supply from leading exporters - Brazil and the USA.

According to sources familiar with the situation, the shipments included at least 10 batches of Ukrainian corn, primarily with delivery terms from March to May, at least 5 batches of American sorghum, and 6 batches of barley of various origins with similar delivery terms.

The publication explained that the price increase in China is driven by Beijing's intensified accumulation of grain for state reserves, aiming to support the market ahead of the planting season for the new crop. This has offset weak demand for animal feed grain from the livestock industry, which is experiencing losses.

• President Volodymyr Zelenskyy says Ukraine is considering expanding its grain borders, particularly in the case of opening the sea in Mykolaiv, and he hopes for the support of Turkish President Recep Erdogan.