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RSS By: Kevin Van Trump, AgWeb.com

Kevin Van Trump has over 20 years of experience in the grain and livestock industry.

China Makes Plans For A Big Purchase Of Corn...Prices Higher!

Nov 15, 2010

Below is a "Special Update" I sent out early this morning about the trade rumors floating around with China & Argentina I thought you guys mights like to read the info...it is very interesting.  If your not yet signed up for my FREE information make sure you do so by following the link below, that way you get all of the updates. 

 

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SPECIAL UPDATE:   You guys will love this one...I have a few more facts from the rumored news that I reported over the weekend regarding China and Argentine striking a huge corn deal. From what I hear the buy could be more significant than than the 5 million metric tons I had originally reported.  More in the ball park of 6-8 million metric tons, all scheduled for  shipment some time between March and August. If it actually happens this would be China's single largest corn import total in modern history. You would have to go back to the 95-96 crop year when the Chinese imported a total of 4 million metric tons to be anywhere close. If it goes down this could be one of the greatest grain robberies of our time. There is even more to this story.  I am now hearing from sources close to the Argentine Government that a select group of Chinese ag delegates have actually been in Argentina for the past 2 weeks trying to figure out how the deal could come together....Imagine that.

Supposedly Argentina has finally agreed to all of the talks, and China has said they would purchase Argentine bonds to help raise Argentina's IMF and World Bank status.  There were some other specifics included in the deal such as beef, wine and other agricultural goods but nothing even close to the corn purchase. Do you realize if this is true it could essentially amount to about 40% of the entire Argentina corn crop next year. This would force much more buying into the US market and would be extremely bullish long-term.  
 
It gets even better. If you look back in the last update I sent out you will see that I reported an odd occurrence at the close of business on Friday in the March corn contract. If you remember the word from the floor on Friday was that Dreyfus came in at the close and out of no where purchased all contracts being offered at limit down, something rarely ever done heading into the weekend and certainly not with the markets getting hammered across the board.  Guess who is being reported as the lead exporter to the Chinese...You guessed it, Dreyfus. Other South American exporters will also be allotted corn export volumes, but this is all just too crazy. If this is just a rumor the pieces are certainly falling into place in a very fitting way.  Nothing official has been released because they obviously are still trying to get it all priced in both the cash and futures markets. 
 
This purchase would obviously help China slow down prices in their domestic corn market and would allow them to release more of their reserves into the streets providing ample short-term supply. Imagine all of this happening right after corn prices got rocked.  These guys are good...very good is all I can say.  We need to be on our "A" game as we move forward.
 
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COMMENTS (1 Comments)


Tip top stuff. I'll execpt more now.
5:46 AM Nov 1st
 
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