Corn prices shot up Tuesday on news that China has made its largest purchase in six months from the United States.
China has also bought a record volume of ethanol.
Prices in the United States govern Canadian corn-market prices.
China bought 53.5 million bushels and Tuesday Arlan Suderman of Stonex Group said “it’s pretty significant and helps explain why we saw the big run up in prices on Monday with some follow through today(Tuesday).”
China also said it intends to buy more ethanol before the end of June.
If it is the rumoured 200 million gallons it would be the biggest annual buy ever by China, and happen in just six months.
“This would be a significant purchase,” said Ed Hubbard, general counsel and vice president of government affairs with the Renewable Fuels Association (RFA). “It would be something that would shake the industry up. The challenge, though, is that we have to wait and see whether or not it actually materializes.”
