China Sees Significant Increase in Corn Demand
China Sees Significant Increase in Corn Demand

China Sees Significant Increase in Corn Demand

  • 29-Mar-2023 5:32 PM
  • Journalist: Shiba Teramoto

China: Last week saw an unprecedented marketing year high of 122 million bushels in Corn exports, with China accounting for over three-fourths of the total. Despite this impressive feat, the estimated figures suggest that the United States is no longer a major exporter in the global Corn market. This is much lower than the average pace set annually indicating a shift in export sales.

This year marks a historic shift in the grain markets: Brazil will export more Corn than the United States for the first time in a decade. Chinese purchases of both Corn and Soybeans have been lower than expected, but still provide welcome relief to a market in distress about export demand.

Soybeans are currently considered “technically oversold”, helping to fuel an increase in prices at the end of last week. While there is hope for strong demand with regards to Corn exports, Soybean exports remain a source of concern as prices remain at their lowest level in one year. The primary cause of this worry has been attributed to African swine fever which continues to wreak havoc within Chinese pig farms.

Soybean markets have seen a surge in prices lately, driven by higher soy meal and oil prices as well as rising Corn and Wheat markets. Speculation of decreased exports from Russia has also played a role in the market rally, particularly given that Argentina is dealing with reduced crop production, leading to predictions of up to 39% more imports compared to recent years.

Wheat markets have been in flux due to news of Russian exports. Initial reports of suspensions have been proven false, but exporters are still being asked to set a minimum threshold to ensure farmers receive adequate payment.

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