In the corn market, Chinese demand should turn to Brazil again, according to information released by TF Agroeconômica. "Premiums have fallen to $54 cents/bushel for July23, to $90 for August23, $90 in September and to $95 for October," he says. 

Itaú BBA said in a monthly report that external demand for Brazil's corn "will remain firm," given the growth outlook of China's economy in 2023 and the growing number of Brazilian companies able to export cereal to the country. The bank recalls that the government of China has set for 2023 the goal of growing 5%, after the local economy advanced 3% last year, "he adds. 

In this context, the International Monetary Fund (IMF), according to Itaú BBA, projects an increase of 5.2% of the Chinese Gross Domestic Product (GDP). "The reopening of the country, with the end of the policy of restricting the movement of people, should favor the resumption of growth, with the expectation of greater demand for commodities, including agricultural commodities," the bank says.

"Itaú BBA recalled that in the last two months China has enabled more than 90 Brazilian companies to export corn, a sign, in the bank's view, that the Asian country's demand for the national cereal tends to remain firm. According to the Ministry of Agriculture, the list to export the product to the Asian country totals 446 Brazilian companies currently. In the first two months, Itaú points out, China was already the second main destination for Brazilian corn, importing 1.1 million tons, behind only Japan, with 1.5 million tons," he says.

Source: Agrolink