Posted on September, 29, 2023 at 06:25 am
Chinese importers are believed to have made large purchases of animal feed corn from Ukraine in the past two weeks, traders in Asia and Europe said on Thursday.
The traders were unable to say the precise volumes but several said they amounted to several hundred thousand metric tons. A Ukrainian government source also confirmed corn sales to China.
"Importers in China have bought around 10 to 12 Panamax cargoes of Ukrainian corn for November/December shipment," said a Singapore-based trader at an international grains trading company, referring to a size of ship with a capacity that typically exceeds 60,000 tons of grain.
“Ukraine is the cheapest origin for corn as of now,” the trader said.
A Ukrainian government source said: “I cannot tell you the volume, but I know that many (traders) did it and it is a good trend (for Ukrainian corn)."
China is traditionally one of the biggest buyers of Ukraine's corn to meet its animal feed needs. Chinese corn shipments were among the largest freight types transported in the United Nations-backed safe shipping channel from Ukrainian ports that ended in July after Russia quit the deal.
European traders said there could be optional shipping routes for the latest sales of corn to China.
This could involve either direct ocean shipment via ports in the Odesa region if the new shipping channel being developed by Ukraine succeeds, traders said. Otherwise Romanian ports could be used, they said.
Ukraine is seen as having large volumes of corn for export. It was able to harvest 25.6 million tons of corn this year and 19 million tons could be potentially exported, the APK-Inform agriculture consultancy estimates.
Ukrainian farm ministry data shows Ukraine has exported 2.6 million tons of corn so far this season, including 545,000 tons in September.
A large Chinese domestic corn crop and surging imports from Brazil are set to flood the Chinese market in coming weeks, reducing demand for other grains, Reuters reported on Thursday.
Source: Successful Farming