The buying frenzy of China to provide the country with sufficient feed raw materials now extends over the new harvest. In total, almost 7 million tons of maize has already been purchased, while the Chinese are also purchasing feed raw materials in the short term.
A combination of a disappointing harvest in our own country and the rapidly expanding pig herd means that China is buying everything there is to know when it comes to feed raw materials. A sky-high corn price means that more wheat is purchased – including in the EU – to replace this feed component.
Buying behavior continues
In early May, China has already purchased more than 3 million tons of grain corn from the US in 3 tranches for the coming export season, which starts on September 1. Another 17 million tons were added on May 1,7. This brings the total for the 2021/22 season to 6,8 million tonnes. The Americans expect that the country will continue to turn to corn for the coming season. Especially now that it is clear that the Brazilian corn harvest will be much smaller than previously thought, due to a late sowing date and dry weather conditions. Countries on the European continent, such as Ukraine and Romania, also hope to literally benefit from this.
At the same time as the new orders, China has also canceled bookings for the old harvest. The counter for the entire season now stands at 23,24 million tons of corn. Of this, 11,38 million tonnes have already been delivered, so more than half have not yet been delivered.
Import from Brazil
Meanwhile, the US is also purchasing large volumes of soy in order to have sufficient supplies. Looking at the number of ship shipments from Brazil to the US, it is inevitable that an enormous volume is heading that way. The largest even since 2014. A total of 208.000 tons of soy will be exported in the coming period. This should keep processing factories and feed producers running in the country.
Brazil normally hardly sells soy to the US, which itself produces a lot. Only in 2014 things were different. Then the export volume was 1 million tons. Because China has been buying up the country this season, the US must look for alternatives to replenish its supplies. Meanwhile, on the CBoT, the soy price has risen to the highest level since 2012.