Abramilho, a brazilian corn growers association, said on Wednesday that Brazil and China are in talks to boost trade in corn between the two countries, but it is not realistic to raise corn exports to China at this time. Historically, Brazil has not been a major supplier of maize to China, exporting only one ship of 68,550 tonnes of maize to China last year, compared to 42.7 million tonnes last year. By contrast, China is the number one buyer of Brazilian soybeans, importing about 58 million tonnes of soybeans from Brazil last year, equivalent to nearly 80 percent of Brazil's total exports that year. Media reports said Brazil was close to reaching an agreement with China, which helped Brazil expand its corn exports to China. China needs corn to meet the growing domestic demand for pig feed. According to the Brazilian Association of Corn Growers, measures to promote trade in maize are relatively simple to implement. China is worried about a weed that can be wiped out using herbicides.
This article originated from the international derivatives think tank