Brazil has reinforced its position as China’s primary corn supplier, surpassing the United States in the first two months of the year, while also witnessing an uptick in soybean exports, according to recent Chinese customs data released on Wednesday.
In the Jan-Feb period, China imported 4.1 million metric tons of corn from Brazil out of a total of 6.19 million tons, marking a substantial 178% increase compared to the same period last year. Meanwhile, U.S. corn imports experienced a significant decline of 67% to 766,989 tons during the same timeframe.
The surge in Brazilian corn exports to China can be attributed to abundant harvests and improved logistical capabilities, including the optimization of northern export routes, enhancing the competitiveness of Brazil as a major grains exporter.
Notably, Brazil is exploring new avenues for exporting agricultural products like corn and soy through Peru’s China-controlled Chancay port, aiming to leverage shorter transit times to Asian markets via the Pacific Ocean and circumvent potential delays at the Panama Canal.
Furthermore, China’s soybean imports from Brazil surged by 211% year-on-year in the first two months of 2024, reaching 6.96 million metric tons. This significant increase in soybean imports from Brazil was supported by robust harvests and competitive pricing, outpacing U.S. market share in the same period.
While Brazil’s soybean market share in China stands at 53%, the U.S. holds a share of 38%, reflecting the continued preference for Brazilian beans due to their cost competitiveness on the global market.
As Brazil progresses with its soybean harvest for the 2023/24 cycle, reaching 63% of the planted area as of last week according to AgRural, the country’s dominance in supplying corn and soy to China underscores its pivotal role in meeting the agricultural demands of the world’s largest importer.