Corn prices in China fall under pressure from increased supply

According to the State Customs Service of the People's Republic of China, in the 11 months of 2023, compared to the same period in 2022, China increased corn imports by 12.3% to 22.18 million tons, in particular in November - a record 3.59 million tons, which is by 384% exceeded the indicator of November 2022, primarily due to the increase in supplies from Brazil and Ukraine. The volume of corn imports exceeded the forecast, despite this year's own record grain harvest of 288.84 million tons.

Amid active grain imports, primarily to southern regions, the active May corn contract on the Dalian exchange fell 1.2% to a 7-month low of 2,409 yuan/t or $337.79/t on Dec. 18.

According to forecasts of the Anec agency, Brazil will export a record 55.95 million tons of corn in 2023, which will exceed the figure of 2022 by 25%, in particular, 7.1 million tons in December. Exports of soybeans will also reach a record level.

From July 1 to December 15, Ukraine exported 7.7 million tons of corn, which is 42% less than last year's pace, and the United States shipped 10.14 million tons of grain from September 1 to December 12, which is 27% more than the corresponding indicator of 2022.

It is worth noting that the Russian Federation signed with China an addendum on amendments to the protocol on phytosanitary requirements for rice, corn, soybeans, and rapeseed, which will allow Russian exporters to increase the supply of these crops from all regions, while previously exports were allowed only from the Primorsky Territory neighboring China , Trans-Baikal and Khabarovsk Krai, Amur and Jewish Autonomous Oblasts.