External demand for Brazilian corn will remain firm

Published Mar 22, 2023

Tridge summary

China's economic growth projections for 2023 have been revised upwards to 5% from the initial 3% growth rate of the previous year, in line with the more optimistic forecasts by the International Monetary Fund. This recovery is largely due to the country's gradual reopening following the easing of restrictions on people movement. The resumption of economic activity is anticipated to boost demand for commodities, including agricultural products, and China has recently permitted over 90 Brazilian companies to export corn, indicating a strong demand for that commodity. Meanwhile, Brazil's corn exports to China are on the rise, with figures expected to surpass 1.5 million tons in March, and the country's corn production is on track to hit record levels despite challenges like delayed sowing and weather conditions. In the US, the Department of Agriculture predicts an increase in corn acreage for the 2023/24 season, which could lead to higher production.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

After a more pessimistic start to the year, China's growth projections show improvement. After growing 3% last year, for 2023 the Chinese government sets a 5% growth target, while the IMF projects a 5.2% increase for the Asian country. According to the analysis by Consultoria Agro Itaú, the reopening of the country, with the end of the policy of restricting the movement of people (lockdown) should favor the resumption of growth, with the expectation of greater demand for commodities, including agricultural ones. In the last two months, China authorized more than 90 Brazilian companies to export corn, signaling that the Asian country's demand for the national cereal tends to remain firm. In total, there are already more than 440 plants qualified for shipments. In the first two months of the year, China was the second main destination for the cereal, with 1.1 million tons, behind Japan, with 1.5 million tons. The partial figures for March indicate that total corn exports from Brazil ...

Source: Agrolink