Brazil is discussing a protocol on shipments of corn with the Chinese government to allow cereal exports in the second half of the year, the Brazilian minister of Agriculture said on Monday.
Marcos Montes commented that the initial agreement provided for the export of Brazilian corn for the next season, but further talks could allow shipments of the 2022 crop.
“The initial protocol was for the following harvest. What we are discussing, which has already been discussed today, and will be discussed in the coming days, is whether we will be able to export the current crop. Exactly because of the great production we had,” Montes told reporters.
Brazil exports most of its corn in the second half of the year, competing with suppliers such as the United States during this period.
China is already Brazil's biggest soybean buyer, as well as a major destination for Brazilian beef shipments.
Montes said that Brazil is harvesting a large second crop of corn and, according to him, the Chinese are interested in importing the Brazilian product.
“It will be discussed in the next few days whether we will be able to export the current corn crop, they want it immediately,” Montes said, citing that discussions to review the protocol took place this Monday.
According to the minister, the protocol covers corn and other products, including peanuts, citrus pulp and soy protein concentrate.
Brazil harvested almost 62% of its second corn crop in the center-south, according to data from consultancy AgRural released this Monday.
Second crop corn represents 70% to 75% of national production and is planted after soybeans, in the same areas.
This year, Brazilian farmers will harvest around 87.3 million tons of the cereal grown in the “safrinha”, said the AgRural.
Disruptions caused by Russia's invasion of Ukraine have redefined certain agricultural trade routes, prompting countries to diversify suppliers.
Sources: investing.com
