Brazil may export corn to China in the second half
Brazilian and Chinese officials are re-discussing a trade protocol so that Brazil can ship corn to China sooner than intended, Brazilian Agriculture Minister Marcos Montes said.
Montes said the successful revision of the protocol would allow Brazilian corn to be exported to China in the second half of the year as opposed to next year, as was agreed earlier with Beijing officials.
Brazil exports most of its corn in the second half of the year, competing with suppliers like the United States in that time window. China is already Brazil’s biggest soybean buyer, as well as a key destination for Brazilian meat shipments.
Montes said Brazil is harvesting a large second corn crop, adding the Chinese are keen to import the Brazilian product.
“It will be discussed in the coming days whether we will be able to export the current corn crop,” Montes said, adding discussions to revise the protocol had taken place earlier on Monday.
“They want it right away,” Montes said, referring to China’s appetite for Brazil’s production of the current season.
The protocol covers corn and other products including peanuts, citrus pulp and soy protein concentrate, Montes said.
Brazil has harvested almost 62% of its second corn crop in the center south, according to private consultancy AgRural.
Second corn represents 70% to 75% of national production in a given year and is planted after soybeans in the same areas.
This year, Brazilian farmers will harvest an estimated 87.3 million tonnes of second corn, AgRural said.
Disruptions caused by Russia’s invasion of Ukraine has redefined certain agricultural trade routes, leading countries to diversify suppliers.
Source: Reuters (Reporting by Ana Mano Editing by Chris Reese and Josie Kao)