China has accelerated its purchases of Brazilian corn to replace imports of the more expensive grain from the United States.
Four ships loaded with Brazilian corn are on their way to China, and another five are expected to leave soon, according to Alphamar Maritime Agency.
With more ships waiting to load, the corn sent to China should exceed 1 million tons this year.
The shipments so far total 280,000 tons, just one month after the departure of the first cargo of Brazilian corn destined for China.
China is a significant importer of U.S. and Ukrainian corn, and its appetite for cheaper Brazilian supplies affects U.S. sales.
U.S. corn export data so far this year indicates a 33 percent drop.
The drying up of the Mississippi River, through which production is shipped, raises logistics costs and makes American grain expensive.
Four other vessels could leave for China soon, given similar cargo patterns, although the final destinations may change, said Alphamar’s commercial director Arthur Neto.
“These confirmations are happening at the last minute,” he said.
If all the docked ships head to China, Brazil’s corn sales to the Asian country could exceed 1 million tons this year.
Brazil exported 6 million tons of corn in November, bringing the year’s total to 38 million, almost double the 20.6 million shipped in 2021.
According to U.S. Department of Agriculture estimates, Brazil is expected to harvest a record crop of 126 million tons.
Due to excessive heat and sudden droughts, European crop losses have increased Europe’s competition with China for supplies.
Lines and waiting times at the port of Santos, South America’s largest, are increasing.
In Ukraine, corn exports have increased 63% over the previous year. This grain is expected to be sold into Europe, which has doubled its corn imports this year.
With reduced demand for U.S. supplies, futures in Chicago hit their lowest level since August on Monday.