Chinese customs have updated its list of approved Brazilian corn exporters. Brazilians have hailed the move, saying it could kick off the sales of Brazilian corn to China, the world’s second-largest economy.

Additionally, the approvals could affect the global corn trade, especially the sales ratio of farmers in the United States. Ukraine is another major exporter of corn, and China had relied on the country and the U.S. for most of its corn imports. However, the war in Ukraine had impacted its production, which means China had to look for an additional supplier.

Brazil To Update Its Approved List Of Corn Exporters

Director of inspections at Brazil’s agricultural ministry, Glauco Bertoldo, commented on the development and what it meant for Brazil’s export. “It is a good alternative for Brazil, having (more) markets to send products to,” he said.

He added that the approved list for Brazilian facilities that export corn to China needs to be updated following the news.

The General Administration of Customs list included 136 corn export facilities on its website. This includes facilities owned by Louis Dreyfus Company and Cofco International, Cargill, Bunge Ltd (BG.N), and Archer-Daniels-Midland Co.

When Cofco was contacted for comments on the inclusion, the company declined to comment. Also, others did not immediately respond to comment requests.

The update could also affect traditional corn importers from Brazil. Countries like Egypt and Spain who have traditionally relied on Brazil for their corn imports could shift base to the U.S., according to a grain broker with StoneX, Craig Turner.

He added that China is probably going to do more business with South America than the United States.

China Has Also Updated Its List Of Brazil Soymeal Exporters

While Brazil is expected to start small corn exports to China very soon, larger shipments will only be possible by early 2023 after the next harvest.

Brasilia and Beijing had already signed a protocol for exporting corm from Brazil to China in 2014. However, complex inspection requirements have kept the trade between the two countries minimal.

In May this year, both countries talked to have a revised protocol. This came only a few months after Russia’s invasion of Ukraine.

China customs have also published a list of 14 Brazilian facilities it has approved to export soymeal to the country.