Dec 05, 2022
New Brazil-China Accord Should Lift Mato Grosso Corn Exports
Author: Michael Cordonnier/Soybean & Corn Advisor, Inc.
The first vessels loaded with Brazilian corn are already on their way to China and many more are expected in the months ahead. This is the first time that China has authorized Brazilian corn imports. Farmers in Mato Grosso feel this new export market will help support corn prices in the state. This large new destination for Brazilian corn should benefit producers in Mato Grosso since the state is responsible for approximately 55% of Brazil's corn exports.
After Russia invaded Ukraine and Ukraine corn was no longer available, China was forced to seek alternative sources of corn. They were reluctant to increase imports from the U.S. due to increased tensions between the two countries, so they turned to Brazil. China and Brazil quickly agreed to phytosanitary standards and China has authorized over 130 facilities in Brazil for corn exports to China.
Prior to the Ukraine-Russia war, the U.S. accounted for 78.5% of China's corn imports with Ukraine accounting for 19.8%. Chinese corn imports in 2023 are estimated at 18 million tons.
Mato Grosso is Brazil's largest corn producing state and nearly all the corn in the state is planted as a second crop following soybeans. The safrinha corn will be planted in January and February and harvested in June and July.