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AG IMPORTS TO CHINA IN QUESTION

Monday, May 3rd, 2010 -- 12:24 PM

Some good and some bad news for farmers, pertaining to exports to China.

China's first purchase of U.S. corn in four years lifted corn futures this week, but China announced plans to block imports of dairy products.

The USDA said Wednesday that China had bought 4.5 million bushels of corn. A drought has cut the Chinese corn crop short, and prices there have risen to $7 per bushel.

But, the USDA also said China plans to block imports of U.S. dairy products beginning Saturday. The Chinese government informed USDA on April 22 that it would halt U.S.
dairy product shipments to China unless the U.S. government agreed to a change in an export certificate.

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