Home / Commodities / Freight News / Brazil extends dominance over US as China’s top corn, soy supplier

Brazil extends dominance over US as China’s top corn, soy supplier

Brazil extended its dominance over the United States as the largest corn supplier to China in the first two months of the year, and also raised its soybean exports, Chinese customs data showed on Wednesday.

The surge in Brazilian supplies to China, the world’s largest agricultural importer, comes just over a year after Beijing approved Brazilian corn exports in an attempt to diversify its suppliers and reduce dependence on U.S goods.

China imported 4.1 million metric tons of corn from Brazil of a total 6.19 million tons that arrived during the Jan-Feb period, data from the General Administration of Customs showed, marking a 178% jump from a year-ago period.

U.S. corn imports shrank 67% to 766,989 tons.

Plentiful harvest and logistical breakthroughs such as the consolidation of northern export routes are boosting the competitiveness of the South American grains powerhouse.

Brazil is also keen on exporting corn, soy and other products through Peru’s China-controlled Chancay port, which would allow Brazilian exporters to send goods by truck to the Peruvian port for shipping to Asia via the Pacific Ocean, cutting the transit time by about two weeks.

Shipping from the port also provides an alternative to the Panama Canal, where ships have encountered delays and logjams due to the impact of dry weather conditions on the canal’s water levels.

SOYBEAN IMPORTS

China’s soybean imports from Brazil also surged 211% year-on-year in the first two months of 2024, as strong harvest and competitive pricing helped outpace U.S. market share.
The world’s top buyer of soybeans brought in 6.96 million metric tons of the oilseed from Brazil, up from 2.24 million tons in the same period last year.

Imports from the U.S. fell to 4.96 million tons from 9.71 million tons in 2023.

Total imports in the Jan-Feb period recorded a five-year low of 13.04 million tons, customs data showed earlier this month, weighed down by poor crushing margins and fewer ship arrivals during the Lunar New Year holidays.

That pegs Brazil’s soybean market share at 53% and the U.S’ share at 38%, according to Reuters calculations.

Brazil is the world’s biggest soybean exporter and competes with the U.S for sales to importers including China.

Chinese buyers have stuck with Brazilian imports as the world’s largest producer continues to offer cheaper beans on the world market, traders and analysts said.

Soybean harvest in Brazil for the 2023/24 cycle is underway, reaching 63% of the planted area as of last Thursday, according to agribusiness consultancy AgRural.
Source: Reuters (Reporting by Mei Mei Chu; Editing by Janane Venkatraman and Sherry Jacob-Phillips)

Recent Videos

Hellenic Shipping News Worldwide Online Daily Newspaper on Hellenic and International Shipping