Mills buy US corn amid fears mold will hit local supply

Feed mills in China, the second-biggest corn consumer, are likely to order more US grain because of concerns that domestic supply won't meet demand before the fall harvest, according to Yigu Information Consulting Ltd.

Snow and rain in northern China have increased moisture in farmers' unsold grain, making it more vulnerable to mold and less suitable as animal feed, said Feng Lichen, general manager of Yigu, which runs China's biggest corn information portal.

Some mills are securing shipments from the US, the biggest exporter, for deliveries later this year using newly issued import permits from the government, as the cost of US corn has dropped, he said.