China’s US corn imports at fresh low in December

China's imports of US corn in December fell to their lowest since July 2020 and a multi-year low for the month, as higher US corn prices pushed Chinese buyers to seek other suppliers.

China received 240,000t of US corn last month, down from 720,000t a month earlier and 1.06mn t at the same time a year earlier, data from the General Administration of Customs show. This was the lowest since 134,000t in July 2020and the lowest for the month since 357,000t in December 2018 (see chart).

Lower receipts from the US weighed on China's overall corn imports last month, which totalled 1.33mn t, down from 2.25mn t a year earlier. But receipts rose from 2021's low of 790,000t in November.

China has been reducing purchases from the US since US corn values rose to a premium to competing origins on a fob basis in September. Hurricane Ida disrupted US Gulf coast port activity in early September, supporting US corn prices well into mid-October. US corn has since lost some of its premium, occasionally turning to a discount to Ukrainian corn, after logistical challenges in Ukraine pushed up the price of its crop.

Higher US corn prices for most of the 2021-22 marketing year (September-August) have weighed on US exports to China, which stand at 2.57mn t, down from 5.72mn t at the same time a year earlier, US Department of Agriculture (USDA) data show.

Ukraine was the largest corn supplier to China in December, sending 920,000t, up from just 51,000t in November, but down from 1.07mn t a year earlier.

And receipts from Bulgaria reached 145,000t - the highest for December in at least 10 years. Receipts from Myanmar reached 84,500t.

Higher corn imports - including from the US - for most of 2021 pushed China's overall receipts to a multi-year high of 28.35mn t, up from 11.29mn t in 2020 and just 4.79mn t in 2019. Last year's volumes far exceeded the 7.2mn t import quota, reflecting positive import margins and strong buying interest.

By Bilal Muftuoglu

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