Corn climbs on speculation China to boost imports

Corn prices advanced for the second day on speculation that China, the world’s second-largest consumer, may increase purchases. China bought 115,000 metric tons from US exporters, the U.S. Department of Agriculture said yesterday, the largest reported transaction since 2001. The sales could pave way for more imports by China, fueling a rally in Chicago futures, said Tian Feng, analyst at BOC International (China) Co. China will import 100,000 tons in 2009-2010, USDA figures show. “With this single purchase now surpassing that estimate, it stands to reason that purchases could continue until a larger crop is planted and viewed to be in favorable shape,” Hussein Allidina, analyst at Morgan Stanley, said in an e-mailed report. The most active futures contract on the Dalian Commodity Exchange advanced 15 per cent in the past year, while Chicago prices dropped 8.9 per cent. Corn for September delivery dropped 0.6 per cent today to 1,918 yuan ($281) per ton in Dalian. Grain for July delivery in Chicago gained 0.4 per cent to $3.6550 a bushel today, after jumping 2.9 per cent yesterday on the USDA sale report.