Confucious Dot Com?

China bought six cargoes of old crop US corn from Bunge last night, according to a report on Reuters. The overnight markets are a little firmer, but don't really seem to have reacted too much as yet.

That's strange as everybody got all excited over only two cargoes last week, and the announcement comes on the back of yesterday's significant tightening of US 2009/10 ending stocks.

The Chinese government's weekly corn auctions have been well subscribed too recently, and domestic prices there are almost double what they are in the US.

Chinese corn consumption this season is expected to be 155 MMT, according to the USDA. That is probably significantly more than they actually produced in 2009 (although not according to the Chinese government it isn't). The USDA have them down as having coincidentally also produced 155 MMT last year.

Yes, I know that they are supposed to have 53 MMT of ending stocks this season, according to our Spectrum ZX wielding chums in Washington. The USDA also have them down to import 300,000 MT of corn in the whole of 2009/10, but they would now appear to have bought more than that last night alone.

Confucious he says: your stores are never empty, until the last kernel of corn is gone.

He might have said that anyway. There's a bloke works down our chip shop swears he's Confucious. No not the one that was bombed by the Germans, the other one - the King Poo Gung Ho Fat Chap Pizza And Kebab Emporium, between Bet Frank and Sweaty Betty's Sauna & Spa.