China makes it easier to import corn from Brazil

A meeting in Brasilia on Friday, August 19, represented another important step toward seeing China give its green light for corn imports from Brazil. Representatives of Beijing confirmed that a few sanitary protocols that had been previously demanded would be no longer necessary in the current harvest.

Last week, sources with privileged information on the negotiation had already told the Bloomberg news agency that China would be taking steps to accelerate these imports by temporarily waiving an important clause, thus paving the way for Brazilian corn.

The director of Pátria Agronegócios, Cristiano Palavro, points out that China has not yet signaled its green light for the start of shipments since there are still some doubts about the mixture of seeds and toxins present in the grains.

“China promised that it will only demand strict adherence to certain phytosanitary rules from 2023 onwards, but companies in Brazil are fearful of closing contracts now and being rejected upon arrival in Chinese ports. These factors put a brake on short-term demand,” comments Palavro.

Regardless, Palavro believes that we shall still see Brazilian corn shipments heading to China in 2022 since many indicators point to the need for corn in Asia. The analyst believes this could influence the Brazilian market and boost grain prices.

See below the track record of Brazilian corn exports from January 2019 to June 2022. The chart below was done using data gathered by Datamar’s business intelligence team in the platform DataLiner.

Corn exports from Brazil | Jan 2019 – Jun 2022 | WTMT

Source: DataLiner (click here to request a demo)

“If sales are confirmed, this is a really positive sign. We are aware of the Chinese demand. If they buy, it will not be in small doses. Brazil should already be exporting a lot by 2022, which tends to stimulate demand even more,” he claims.

Source: Notícias Agrícolas

To read the full original article, please go to: https://www.noticiasagricolas.com.br/noticias/milho/325288-china-da-mais-um-passo-rumo-a-liberacao-da-importacao-do-milho-brasileiro.html#.Yv_KkXbMLIU

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