China will increase purchases of corn, cotton and sugar to maintain stocks
With shooting in the international prices of corn, cotton and sugar, China can be forced to replenish their strategic stocks after part of stocks was sold by the Government in an unsuccessful attempt to cool domestic prices.
The possible resumption of Chinese purchases will result in strengthening of a movement of high on prices of these products, which are already at high levels.
Responsible for approximately 60% of global imports of soybeans and largest importer of cotton, China, according to analysts, could enter in the market to buy more than 5 million tonnes of corn in 2011, almost four times more than expected for this year. If confirmed the expectation, the country will become the fifth largest importer of corn.
The country is also trying to limit the advance of sugar prices in domestic market. Local demand is growing on average 6% per year, which means that there must be an additional demand of 800,000 tonnes in 2010/11. China imported 1.365 million tonnes between January and September 2010, 43.33% more than in the same period in 2009, mainly from Brazil.
In the case of cotton, the Asian country acquired large volumes in the international market in recent months, and in September the imports reached 201,000 tonnes, almost two times more than normal monthly.
Read more at www.commoditymarket.com.br
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