Corn supported by Chinese purchasing & high temperatures
China has been active in purchasing corn from the U.S. On Friday, July 10, purchases were 1.3665 million metric tons (MMT), the second highest on record. Then last Tuesday, purchases of 1.762 MMT set a new record, eclipsing the previous record of 1.45 MMT back in 1994.
Corn demand from ethanol remains lackluster despite the rebound in ethanol production after the lows sustained in April as shelter-in-place policies spread across the U.S. Weekly production has started to turn sideways after returning to 900,000 barrels per day, still down over 10 percent vs. the last two years. With new cases of COVID-19 rising across the country, ethanol production will likely remain weaker for the foreseeable future. The U.S. is not alone in seeing some higher incidence of COVID-19 as new cases globally have topped over 1 million in the last five days.
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