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China boosts U.S. corn exports

Posted by Rafael Moro

Image: Pixabay

China has already purchased more than a third of its total corn imports projected for the United States' 2021-22 campaign from the United States, according to data from the United States Department of Agriculture (USDA). USDA figures show that China purchased 9.5 million tonnes of corn from the United States and is expected to import about 26 million tonnes from all international suppliers for the 2021-22 season, which begins in September.

The Asian country's demand for corn has increased dramatically in recent months, as its pig herd continues to expand after a period in which it has significantly shrunk due to the outbreak of African swine fever. Purchases of North American corn come at a time when there are many uncertainties about the corn crop in Brazil, which is facing droughts in some of its main production areas.

Arlan Suderman, chief commodity economist at Stone X, told Bloomberg that China "wants to have coverage with Brazil's crop getting smaller and the US crop facing undetermined risks for the upcoming crop." In addition to the forecast of 26 million tonnes of corn imports, China is expected to increase its production for the 2021-22 marketing year by 4.3% due to the increase in planted area and yield.

The country's agriculture ministry said earlier this month that it expected corn production to reach 271.81 million tonnes, up from 260.67 million a year ago. The USDA in its most recent export sales report said U.S. corn exports and undelivered sales to China in 2020-21 totaled 23,244,300 tonnes. Of the total, 11,380,300 tonnes have already been shipped to China and 11,864 million tonnes have yet to be delivered.

By: Leonardo Gottems | Agrolink

This text was automatically translated from Portuguese.