China may start importing corn from Brazil as early as December, part of a drive by the world’s top buyer to reduce dependence on the US and replace supplies from Ukraine cut off by the Russian invasion, reports Bloomberg.
Some 45 facilities owned by companies including Bunge, Cargill and Archer-Daniels-Midland have been pre-approved by Brazil to export to China, a list seen by Bloomberg shows. The final total will be higher because of a large number of requests, said a person familiar with the matter, who asked not to be identified as talks continue. The final list is likely be sent to China in November.
China is taking steps to accelerate imports of Brazilian corn, diversifying supply at a time when the war in Ukraine has disrupted trade and tensions with the US are high. A rally of more than 20% in Chicago corn futures in less than three months, compounded by a surging US dollar, has increased the urgency of finding alternative cargoes. China is also curbing corn starch exports, in a sign the country’s fretting about supply.