Will China buy more U.S. corn?
One of the big questions in the corn market right now is whether China will continue to buy U.S. corn.
StoneX market analyst Arlan Suderman says everyone is watching to see what China does with its tariff-rate quota (TRQ) on corn.
“Overall, China has already purchased more than their 7.2 million metric ton TRQ, or import quota. The buyers there—even the state buyers—are banking on an increased TRQ to allow more corn in,” Suderman says.
“The question is whether it will happen. You can make a strong argument for an increase in the TRQ to 20 million metric tons, or even 30 million metric tons. But as I talked to our Shanghai office again this morning, they remain very skeptical.
“So right now, I’m operating off of an estimate of a TRQ increase to about 12 million metric tons. I think the market has already priced in 20 million metric tons.”
Suderman says he would expect the Chinese to make an announcement on their TRQ for corn before the end of the year.