China enters the Brazilian corn market and empties Europe's granary

Maize (Corn)

Brazil

China

Published Apr 26, 2023

Tridge summary

The Asian giant plans to quadruple the purchase of this cereal from the South American country this year. Many eyes are on Latin America and the Caribbean. Not only the EU takes care to protect its interests in the region, as China has been penetrating more and more to become its largest trading partner . "It would not be surprising that, if the Mercosur negotiations do not go ahead, China will come and do it," evidenced community sources.

Original content

The strategic approach of the EU to Latin America is an idea that Spain or Portugal have been defending, but also the High Representative Josep Borrell on the scene of community institutions. Beyond the fact that the region harbors a special interest in its deposits, and especially 85% of the world's lithium reserves, a key element for the production of components such as electric car batteries, commercial relations also pass through the sector agriculture and, specifically, due to the importation of grain from the Latin American country. Corn is the main raw material that the European Union acquires from Brazil. According to the latest data from the European Commission, trade in this raw material went from 3,309,387 tons in the 2021/2022 business year to 7,904,878 until April 10 of this year. Therefore, Brazilian corn went from being 26.2% of total imports of this good to 36.4%, only behind grain from Ukraine, which reached 11,743,220 tons so far this year. In the case of Spain, ...

Source: Infopork