In an extremely rare move, China’s state-owned grain operators have begun purchasing corn from Brazil as the country seeks to protect itself from disruptions in shipments from its main suppliers in the United States and Ukraine. According to operators, China ordered 250,000 to 400,000 tonnes of corn from Brazil for September. Brazil is the second-largest exporter of corn in the world, but China rarely purchased from the country in the last nine years due to phytosanitary concerns. At a meeting in Brasilia, the two nations finally agreed on sanitary guidelines after years of discussion, paving the way for increased purchases. China already buys most Brazilian soybeans exported abroad, another food ingredient used as animal feed for its vast swineherd. “Now that the protocol is signed, the second logical step is to clear the different varieties of corn to avoid problems with custos”, said Glauber Silveira, executive director of the Brazilian Association of Corn Producers in Brazil.
Sources: Money Times/Datamar News