Although domestic corn prices have continued to fall in recent times, news from the import market shows that Chinese buyers purchased another 1.02 million tons of US corn on April 11.

This is also the second large single-day purchase of US corn exceeding one million tons this month after April 4. The last purchase was 1.04 million tons.

Judging from the U.S. Weekly Grain Export Report, in the week ending April 7, 2022, Chinese buyers completed the purchase of 470,000 tons of U.S. corn, 140,000 tons of sorghum, and 420,000 tons of soybeans. Shipping work.

There are various signs that with the interruption of Black Sea supply, Chinese buyers have begun to increase their imports of US grain.

Judging from my country’s grain import data last year, the Black Sea region’s impact on my country’s grain imports was mainly corn and barley produced in Ukraine. However, it was precisely the interruption of grain exports from Ukraine that caused my country’s purchase Households have to seek other supply channels.

Relatively speaking, although Russia is the world's largest wheat exporter, its wheat exports to China are very limited because my country has sufficient domestic wheat supply.

Export data from the United States also shows that although my country has purchased a large amount of U.S. corn, sorghum, soybeans and other crops since this year, its purchase of U.S. wheat has been almost zero.

It is worth noting that although my country has been relatively active in purchasing corn in the international corn market in recent times, domestic prices have shown a downward trend during the same period.

As of now, the purchase price of corn in Huanghuai region is concentrated between 2800-2900 yuan/ton, while the overall price in Northeast China is in the range of 2540-2720 yuan/ton.

For comparison, the current theoretical duty-paid cost of U.S. corn imports is about 3,100 yuan/ton.

However, it should be pointed out that the common transaction mode for the import of bulk commodities such as corn and soybeans in my country is click transaction. The actual transaction price of the commodity is not determined on site. The buyer only needs to specify the price before the delivery date. Chicago futures provide certainty for the benchmark price on a given day.

Considering that there are still about 5 months until new corn is launched, the domestic corn supply will continue to maintain a downward trend, and the international market is likely to experience greater fluctuations during the same period. It is not a bad thing to lock in the supply in advance. .

However, in the short term, the global supply situation is still not optimistic.

The grain supply and demand briefing released by the Food and Agriculture Organization of the United Nations last week also showed that supply disruptions in the Black Sea have had an impact on global grain trade flows.

It is reported that in addition to disruptions in logistics, as Europe and the United States and other countries implement sanctions against Russia, some countries have also successively reduced their imports of Russian wheat.

The latest news shows that Egypt, which imported a large amount of Russian wheat in the first quarter, restricted the wheat production to come from Europe in the latest wheat bidding procurement.

As the world's largest wheat importer, Egypt's domestic wheat reserves have dropped to 2.6 months' supply, far below recent levels and below the six-month target set by the government.

In addition, due to the interruption of supply from the Black Sea, more and more countries have begun to adopt restrictive measures on grain exports.

Judging from the news we have received, starting this month, Russia, Belarus, Algeria and other countries have adopted temporary management measures on the export of some grain varieties.