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Corn Falls on Concern Demand Will Drop as China Rejects Cargoes

December 3, 2013
china flag

Dec. 3 (Bloomberg) -- Corn fell in Chicago on speculation demand for U.S. exports will slow after China rejected two cargoes containing an unauthorized, genetically modified variety of the grain.

China’s corn imports may be less than earlier projected after the country found the unauthorized MIR162 variety in shipments, state-owned researcher said in an e- mailed report. China also rejected another U.S. cargo last month. Exporters sold about 5.3 million metric tons of corn to China this season, including about 3.2 million tons yet to be shipped, according to the U.S. Department of Agriculture.

The Chinese rejection "now remains an unknown for future trading in the corn market," Matt Ammermann, a commodity risk manager at INTL FCStone Inc. in London, said in a report.

Corn for delivery in March fell 0.3 percent to $4.2325 a bushel at 7:10 a.m. on the Chicago Board of Trade. The grain tumbled 39 percent this year on the outlook for a record U.S. harvest. China is the world’s top corn consumer after the U.S.

November and December corn arrivals at Chinese ports may be less than previous respective forecasts of 600,000 tons and 1.75 million tons, said. The rejection "raises the question of whether we will see any more U.S. corn imports at all in the next few months," said Feng Lichen, the general manager of Dalian, China-based researcher Yigu Information Consulting Ltd.


Milling Wheat

Wheat for delivery in March gained 0.2 percent to $6.63 a bushel. In Paris, milling wheat for the same delivery month fell 0.1 percent to 207.50 euros ($281.68) a ton after yesterday touching 209.50 euros, the highest since June.

Egypt, the world’s biggest wheat importer, issued a tender to buy the grain today. The country’s state-run buyer purchased one cargo of French wheat in its latest tender on Nov. 27, after taking mostly Romanian, Russian and Ukrainian supplies since the marketing year began July 1.

Wheat lost 15 percent this year in Chicago as the USDA estimated bigger crops in Canada and Russia will boost global production to a record 706.4 million tons. Australia raised its production outlook today to 26.2 million tons, the third-highest on record and 6.9 percent more than forecast in September.

Soybeans for delivery in January slumped 0.4 percent to $13.1575 a bushel in Chicago. The oilseed dropped 6.7 percent this year.


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RELATED TOPICS: Corn, Marketing, Exports, Global Markets

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