BEIJING/SHANGHAI, July 19 (Reuters) - Some Chinese animal feed producers are in talks with their suppliers to sell back 4-5 U.S. corn cargoes for shipment in 2012/2013 as they seek to profit from record high prices, two trade sources said on Thursday.
Sources said the negotiations were driven by buyers’ desire to profit from higher corn prices as they had booked the shipments at much lower prices.
“We are still talking about washing out the cargoes. It is good for both sides. Buyers booked the cargoes at a price of below $6 (per bushel) while current U.S. corn has already risen much higher,” said one of the sources, who declined to be identified as he was not authorised to speak to the media.
U.S. corn jumped to an all-time high on Thursday, rising to $8.04 a bushel as the worst drought to hit the U.S. Midwest in 56 years continues to curb grain yields. (Reporting by Niu Shuping and Fayen Wong; Editing by Jacqueline Wong)