December 21, 2023

China records highest-ever November corn imports

China has reported a historic high in corn imports, reaching 3.59 million metric tonnes in November 2023, according to data from China's General Administration of Customs, Nasdaq reported.

This surge, marking a 384% increase from the previous year, coincided with China achieving a record domestic corn production of 288.84 million tonnes this year. The boost in output follows governmental initiatives aimed at enhancing staple grain production for food security.

The unexpectedly high import volumes were attributed to swift shipments from Brazil, along with some contributions from Ukraine, as noted by Rosa Wang, an analyst at the Shanghai-based agro-consultancy JCI.

Wang highlighted that the influx of imported grains into southern China is anticipated to impact the market share of locally produced Chinese corn, leading to reduced demand for domestic corn deliveries from the primary producing regions in the northeast. This shift is expected to exert downward pressure on prices.

China's most-active May corn futures contract on the Dalian Commodity Exchange experienced a 1.2% decline on Monday, reaching CNY 2,409 (US$337.79) per metric tonne, marking its lowest point in nearly seven months.

Cumulatively, for the first 11 months of the year, China's corn imports have reached 22.18 million tonnes, reflecting a 12.3% increase compared to the same period in the previous year, according to data from Chinese customs. The significant rise is predominantly attributed to a surge in arrivals from Brazil, where buyers capitalised on lower prices resulting from a bumper harvest in the South American nation.

The surplus in crop and subsequent decline in domestic prices are anticipated to benefit Chinese livestock farmers, particularly those involved in feeding corn to the world's largest swine herd.

-      Nasdaq