China is working to rebuild their grain stocks following the effects of the pandemic. Dr. Dermot Hayes, Ag Economics Professor at Iowa State University says because of that China’s demand for U.S. corn is surging and the U.S. is ready to supply that.
He says China is willing to buy U.S. corn because it’s very inexpensive compared to that produced in their own country.
Hayes says the recent derecho won’t keep the U.S. from supplying China’s needs for corn because the carryover stocks are so large. He also says they remain our major customer since other nations are curtailing their purchases because of the slow down in the world economy.
The most recent data says China will now import$21.63 billion in agricultural products from the United States in the first year of the phase one deal, an increase of almost $3 billion from the first prediction in May.
