China is expected to start importing corn from Brazil as of December. The country seeks to be less dependent on the corn of the United States and replace supplies from Ukraine, which were cut off by the Russian invasion.

About 45 facilities of companies such as Bunge, Cargill and Archer-Daniels-Midland were pre-approved by Brazil to export to China, according to a list that Bloomberg News had access to. The total number, according to a Bloomberg News source who declined to be identified, will be higher because of a large number of requests. The final list will likely be sent to China in November.

Beijing is taking steps to accelerate imports of Brazilian corn by diversifying supply at a time when the war in Ukraine has disrupted trade and tensions with the United States are rising.

A rise of more than 20% in Chicago corn futures in less than three months, compounded by a stronger U.S. dollar, has increased the urgency of finding alternative charges. China is also restricting exports of cornstarch, in a sign of the country's concern about supply.

Although Brazil is the second largest exporter of corn in the world, China has almost never bought from the agricultural power house in the last nine years due to phytosanitary concerns.

At a meeting this year in Brasilia, the two nations reached an agreement on health guidelines after years of negotiations, paving the way for purchases. The measure threatens the United States' participation in Chinese imports.

Bunge tops the list seen by Bloomberg News with 20 companies approved by Brazil to export corn to China. As soon as Beijing approves the names, the companies will negotiate directly with buyers from the Asian country.

China already buys most of Brazil's soybeans, another food ingredient for its huge herd of pigs. The Asian nation has a history of moving away from U.S. agricultural supplies at a time of rising tensions, such as in 2018 and 2019, during the trade war with Donald Trump, and has a broader goal of reducing dependence on a single supplier.

Source: RPA news