Brazil’s First Corn Shipment To China Indicates Shifting Trade Flows Could Endanger US Dominance

Original article here.

Brazil, the world’s second-largest corn exporter, sent its first vessel carrying corn to China this month. Global trade flows are shifting away from the US, the largest exporter of corn, as China reduces its reliance on the Midwestern US farm belt.

Commodity traders have tracked the Star Iris, the bulk carrier hauling 68,000 metric tons of grain for Chinese trader Cofco Corp., which left Brazil late last month and just arrived in Singapore.

Bloomberg said Beijing decided to purchase Brazilian grains in May to “reduce dependence on the US and replace supplies from Ukraine cut off by the Russian invasion.”

Reuters recently quoted Brazil’s National Association of Grain Exporters as saying Brazilian corn exports could surge next year because of China.

There’s still a while until Brazil threatens the US dominance of the China ag market. More than 20 bulk carriers with US corn are currently en route to China. Still, Brazil’s first corn shipment to China might indicate global trade flows are shifting.

By PatriotmanPublished On: December 31, 2022Categories: Uncategorized2 Comments

About the Author: Patriotman

Patriotman currently ekes out a survivalist lifestyle in a suburban northeastern state as best as he can. He has varied experience in political science, public policy, biological sciences, and higher education. Proudly Catholic and an Eagle Scout, he has no military experience and thus offers a relatable perspective for the average suburban prepper who is preparing for troubled times on the horizon with less than ideal teams and in less than ideal locations. Brushbeater Store Page: http://bit.ly/BrushbeaterStore

2 Comments

CPL Antero Rokka December 31, 2022 at 05:41

Well, as the gal at the grain elevator would say: “No sh*t, Sherlock!”

Money travels the globe–it’s looking for VALUE and DEPENDABILITY.

If I were a mega-corn grower in the Midwest I’d start getting worried about now. USDA, Uncle Sammy and the “big boys” have been fussing and fighting each year for prices, subsidies, and more and more.

Other countries–they are not fooling around–just doing HARD WORK.

Bottom line: along comes Brazil–huge corn acreage, cheap labor, modern machinery and little to no BIG GOV in their farming–it’s called “COMPETITION.” Meet it or beat it.

Money talks and BS walks. Peso, lira, yuan, ruble, euro, USD…all speak. Money is like water–it seeks its own best level. Yet gravity is raciss.

Why pay “X” for corn, when you can get it shipped to you for “X minus Y.” Simple maff. But, then again, maff is raciss.
Walt December 31, 2022 at 09:05

Given the progressive need to eliminate gasoline… less need for ethanol, there should be plenty of corn in the future.