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China buys 900,000 tons of US corn

The US government confirmed on Thursday that China had purchased 900,000 tons of corn, despite reports of record corn crop within China, Reuters reported. The sale is probably the second-largest single-day sale of US corn to China, following a larger sale in March of 1.25 million tons that the US Department of Agriculture assigned to an anonymous buyer, widely believed to be China. China may have also purchased a large quantity of corn from the world’s number two exporter, Argentina. Analysts said they expect China to buy even more in coming weeks to restock depleted reserves. “China’s been buying corn on big price breaks. If we continue to see corn prices drop off, maybe down to the $5.50 (per bushel) level, we could see another massive import tender,” said Terry Reilly, an analyst with Citigroup (C.NYSE).

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