July 3, 2024

Argentina prepares first corn shipments to China in 15 years

Argentina is preparing corn shipments to China, marking the first such exports in 15 years as the two countries seek to expand agricultural trade, Bloomberg reported.

Cargoes assembled by Cofco International Ltd could be the initial shipments since China reopened its market to Argentine corn following prolonged diplomatic discussions, according to Gustavo Idigoras, head of Ciara-Cec, a national crop-export group that includes major agricultural trading houses.

A few weeks ago, Argentina completed steps to obtain approval from Beijing to access the Chinese market for its corn, following an agreement on sanitary requirements last year. Argentina's corn harvest is currently in full swing, with 55% of the crop collected as of June 26, 2024.

These corn shipments to China suggest that the two countries are likely to maintain a robust trade relationship under the leadership of Javier Milei, who had previously vowed to limit ties with Beijing if he became Argentina's president. Milei took office in December. Chinese trade and investment significantly influence Argentina's economy, spanning commodities, energy, and banking sectors.

In January, Chinese customs authorities also authorized traders in Argentina to export wheat for the first time.

China is the world's largest importer of corn for livestock herds. Traditionally, the Asian giant has sourced the grain from the US but has increasingly turned to Brazil after approving supplies from the country in 2022.

China's farmers continue to face extreme weather conditions, from flooding to drought, threatening crops including corn and placing pressure on the nation's leaders who are promoting food security. Dry conditions in the north have damaged the wheat harvest and delayed the planting of corn and soybeans.

In another development, Syngenta AG has chartered the MSXT Echo tanker to send 66,000 metric tonnes of soybeans to China, one of several routine Argentine soy shipments to Asia. A ports lineup published by the Nabsa shipping agency had earlier incorrectly listed the cargo as corn.

-      Bloomberg