China is ramping up purchases of Brazilian corn, replacing imports of the more expensive US grain. Four vessels loaded with Brazilian corn are currently en route to China and five more should sail to China soon. Additional vessels waiting to load may also head there, pushing total Brazilian corn shipments to China past 1 million tons for the year. Shipments to date already exceed 280,000 tons, just a month after the first cargo of Brazilian corn headed to China. Historically an importer of American and Ukrainian corn, China’s appetite for cheaper and abundant Brazilian supplies are taking a toll on US sales. Export inspections of American corn of 6.3 million tons are down 33% so far this year, pressured by a dry Mississippi River that is raising logistics costs and helping to keep supplies too expensive for importers.
Sources: Bloomberg News/Datamar News