Feed mills in China are including more corn in their feed formulations as higher prices for wheat and sorghum reduce demand for those components, found a USDA report.
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Brazilian corn is now available and priced competitively with domestic corn, said the authors of the USDA FAS publication. South American corn is also relatively low price compared to the US equivalent. In addition, Chinese feed mills have exhibited increased flexibility in grain substitution in their feed formulas in the past few years, making procurement even more price-driven today, commented the team. Brazil is projected to have 40-50 MMT corn export capacity in MY2022/23, they noted. China agreed to temporarily waive a key clause in the phytosanitary protocol re-signed with Brazil in May 2022, in part, to reduce dependence on the US, but also to replace supplies cut off from Ukraine owing to the Russian invasion, and the volatility surrounding the Black Sea Grain Initiative, they added. Moreover, in October 2022, China approved over 130 Brazilian facilities for export. “Industry sources reported close to 2 MMT of Brazilian corn was planned to sail to China from November 4, ...
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