China's Corn Purchases May Hold Clues to $17 Billion Ag Commitment

An economist from the University of Missouri Extension is keeping an eye on China's corn purchases as they may offer clues to fulfilling its $17 billion non-soybean ag purchase pledge.

Ben Brown says recent production challenges in China have led to increased corn buys, but notes that only a few commodities can account for such a large share of the commitment. These include corn, beef and cattle products, and cotton, which make up two-thirds of shipments.

Brown believes it's unlikely China will meet its target with beef and cattle products due to production constraints in the US. Cotton exports may also be limited due to droughts in the southern United States, leaving corn as a potential key player in meeting the commitment.