The world's largest corn buyer China may be imported from Brazilian corn as early as December to reduce dependence on the United States and replace Ukraine supply chains influenced by the Russian and Ukraine War.
According to the list of importers seen by Bloomberg News, about 45 facilities under the BUNGE LTD, Cargill Inc, Archer-Daniels-Midland and other trading companies have obtained Brazil pre-approval by BrazilExit corn to China.
Bloomberg Society on Thursday (October 13) quoted anonymous insiders that the total number of exporters may be higher due to the large demand.The list of exporters may be sent to China in November.Once the Chinese government approves the list, these companies will negotiate directly with Chinese buyers.
As the Russian and Ukraine War disrupted trade activities and intensified the tension with the United States, China is taking measures to accelerate the import of Brazilian corn and strive to diversify the source of agricultural products.
Chicago corn futures prices have risen by more than 20%in less than three months, and the US dollar exchange rate has soared, looking for an increase in urgency of alternative agricultural products.In addition, China also restricts corn starch exports, showing concerns about supply.
Although Brazil is the world's second largest corn exporter, but because of concerns about plant quarantine, China has almost never imported Brazilian corn in the past nine years.After many years of consultation between China and Brazil, a negotiations held in Brazil this year reached an agreement on the Health Quarantine Regulations to spread the road to imported Brazil's corn.The operation will threaten the share of the United States in the import of corn in China, which is equivalent to about 70 % of the US -China corn in the United States in 2020 to 2021.
