Brazil moves closer to China corn exports as Beijing approves traders

Chinese customs updated its list of approved Brazilian corn exporters on Wednesday, Nov 2, a move a Brazilian agriculture official said could jumpstart sales of corn to the world’s second-largest economy.

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

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

The approvals could reshape global trade flows and result in fewer sales for farmers in the United States, the world’s top corn supplier. China relied on the United States and Ukraine for most of its corn supplies but Russia’s invasion of Ukraine has disrupted exports.

Beijing and Brasilia had signed a protocol for exporting corn from Brazil to China in 2014 but little trade had happened due to complex inspection requirements.

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

Source: Reuters

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