This Chinese Corn Thing
The state-owned agency Cofco has bought more corn overnight, according to media reports. That means it has already booked it's half a million tonne import quota in the space of a week.
It seems highly likely that there have been other under the counter sales too, but the market seems nervous of getting too carried away by this news. Cofoco's announcement that they have already obtained customs clearance for the corn they have bought certainly seems to push the door open a little bit wider for other private imports.
There is some talk now of Cofco using the import quotas of other companies to "safely" purchase further cargoes ie. if the government agency bring it in then it is unlikely to fall foul of customs.
Meanwhile I am indebted to Derek Newman for emailing me to point out that the guy from the State Administration of Grain who has been busy assuring the media this week that the Chinese government are awash with corn stocks is called Zeng Liying.
It seems highly likely that there have been other under the counter sales too, but the market seems nervous of getting too carried away by this news. Cofoco's announcement that they have already obtained customs clearance for the corn they have bought certainly seems to push the door open a little bit wider for other private imports.
There is some talk now of Cofco using the import quotas of other companies to "safely" purchase further cargoes ie. if the government agency bring it in then it is unlikely to fall foul of customs.
Meanwhile I am indebted to Derek Newman for emailing me to point out that the guy from the State Administration of Grain who has been busy assuring the media this week that the Chinese government are awash with corn stocks is called Zeng Liying.
