According to Bloomberg, China has restricted the exit of corn starch to stabilize domestic corn prices and inflation risks, reflecting that China began to worry about local corn supply.
Egly agricultural analyst Ma Wenfeng said that the Chinese government has asked enterprises to suspend export corn to stabilize the price of corn and curb the risk of inflation.
Ma Wenfeng said that the price of corn is high, and the cheaper Ukraine supply export is not easy. If China continues to export corn, it will further increase the domestic price.
The traders and processors interviewed by Bloomberg also confirmed that the Chinese government is restricting the export corn of enterprises, but there is no detailed explanation of how the official notification is issued.The Chinese Ministry of Agriculture did not respond to the request of comment.
Although the export volume is relatively small, this move reflects China's concerns about domestic food supply and price increase.China imported corn is mainly from the United States and Ukraine.The United States may face production this season, and the Russian and Ukraine War caused Ukraine's corn exports.Although most of the corn consumed in China is producing, bad weather has also affected corn yield.
According to the data of the General Administration of Customs of China, China's corn exports in August decreased by 24%compared with the same period last year to 9048 tons, a 26%decrease from the export volume in July.However, from January to August this year, corn exports still increased by 22.8%from the same period last year to 100,000 tons.
It is reported that in the case of reduced production in the Russia -Ukraine War and the United States and Europe, global corn prices have risen by about 15%this year.In order to alleviate supply risks, China is already trying to diversify the corn import chain and speed up purchases from Brazil.
