China Orders Over 600,000 Tons of Ukrainian Corn, Snubs U.S. Supplies
Under a loan-for-grain deal struck between the two countries, Ukraine shipped approximately 1 million tons of corn to China in 2014 and states this month that it targets doubling that volume in 2015. So far, for the month of January, Ukraine shipped 470,047 tons of corn to China, surpassing U.S. volumes, despite U.S. corn being quoted as being $13 cheaper per ton.
China has already booked over 600,000 tons of corn from Ukraine for 2015, while U.S. corn is trading at a six week low as exporters work to sell the country’s latest record crop.
Traders have stated that U.S. corn is less popular with Chinese buyers after U.S. exporters asked Chinese buyers to bear the financial risks associated with the importation of genetically modified corn. Chinese buyers and mills are also concerned that Beijing will reverse direction and once again turn away U.S. corm cargoes containing Syngenta’s genetically modified AG Agrisure Duracade variety.