China includes new names to list of approved Brazilian corn exporters

Chinese customs updated its list of approved Brazilian corn exporters on the 2nd, a move that a Brazilian agricultural official says could boost the sale of Brazilian corn to China.

China’s decision has the potential to reshape global trade flows and result in US producers selling less. For example, China depended on the United States and Ukraine for most of its corn supplies, but Russia’s invasion of Ukraine affected exports.

“Gaining these markets is a good alternative for Brazil,” said Glauco Bertoldo, director of the inspection department for products of plant origin at the Brazilian Ministry of Agriculture.

He said in an interview that the list of Brazilian facilities approved to export corn to China could gain additional units in the coming weeks.

The new list on China’s General Administration of Customs website included 136 corn export facilities, Bertoldo said, including facilities owned by Archer-Daniels-Midland Co, Bunge Ltd, Cargill, Louis Dreyfus Company, and Cofco International.

Cofco declined to comment. The other exporters did not respond.

Bertoldo said that Brazil also sent Beijing a list of approved facilities to export soybean meal, which Chinese customs authorities have not yet published.

Once China starts buying corn from Brazil, traditional Brazilian corn importers such as Spain and Egypt may shift some of their purchases to the United States.

China might start buying small quantities from Brazil soon, but large shipments are not expected until the next Brazilian harvest in 2023, said Craig Turner, a grain broker at StoneX.

Beijing and Brasília signed a protocol for exporting corn from Brazil to China in 2014, but little trade took place because of complex inspection requirements.

The countries agreed to a revised protocol during talks in May, just months after Russia invaded Ukraine in February.

According to the Agriculture Ministry, China is expected to import 18 million tonnes of corn in the 2022/23 crop year that started in October.

China’s imports from Ukraine fell below 2,000 tonnes in September this year, leaving it dependent on the US for most of its foreign supplies.

Source: Globo Rural

To read the full original article, please go to: https://globorural.globo.com/agricultura/noticia/2022/11/china-atualiza-lista-de-exportadores-de-milho-brasileiros-aprovados.ghtml

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