It is expected that commercial companies will not make deals because "they have no profit from the import of corn from the United States." The Chinese government also is not interested in the purchase of us corn to replenish the government's stockpile, primarily due to increased prices.

Beijing and Washington on Wednesday in Shanghai has completed its latest round of trade negotiations after an almost three-month break, during which there was no any progress. China has said it will continue to buy agricultural products of the United States, including corn, and refused retaliatory tariffs on some imports, but there are no signs of any significant new procurement.

American corn even without the 25% import duty is only 50 yuan per ton cheaper than domestic supply in the southern province of Guangdong, which is the largest consumer of corn in the country. Such a minor price gap is not very sensitive to local buyers, say experts from the Shanghai JC Intelligence Co.

While the largest in 10 years with the future corn crop in the United States has pushed prices up, in China, the corn market came under pressure from the falling of ASF pigs. The most significant reduction in the number occurred in June.

As for soybeans, the government of China has given permission to five companies on their duty-free purchases as a gesture of goodwill in trade negotiations. But in this case, traders I doubt that will be entered into a major transaction, because of ASF falling margins and processing of this raw material. Besides the serious competition, the U.S. provides Latin American soybeans.

However, some traders are skeptical that a major transaction will be carried out, as the crushing margin remains low due to the swine fever and competition from South America.

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