American corn is no longer popular
According to the Nihon Keizai Shimbun on December 19, Argentina and Brazil will expand their agricultural exports to China. This is because the US China trade war is resurfacing, and the United States will reduce its agricultural exports to China. South American countries are hoping to reap the benefits of Trump's return to power
The report states that Argentina will soon begin exporting wheat to China. Gustavo Edigoras, the head of the Argentine Chamber of Commerce for the Vegetable Oil Industry and Grain Exporters, stated in early December that "this year's wheat prices in Argentina are the most competitive in the world," expressing a desire to expand sales
China mainly imports wheat from the United States, Australia, and Canada. This is the first large-scale import from Argentina, and China has approved transactions with Argentine wheat production companies
Argentina is one of the major exporters of wheat and is expected to have a bumper harvest in 2024. The export volume of Argentine wheat decreased to around 3 million tons in 2023 due to severe drought, and reached around 14 million tons in 2022. Argentina mainly exports wheat to Brazil and Chile
Argentina has recently received approval from the Chinese government to export corn to China. The United States and Brazil are the main countries supplying corn to China, and Argentina also wants to join this group
The report also stated that the background for Argentina's increase in agricultural exports to China is that US President elect Trump has claimed to raise tariffs on Chinese products. Due to the possibility of China listing American agricultural products as targets for retaliatory tariffs, this could be a good opportunity for Argentina to seize sales from the United States
For Argentina, which is promoting economic reconstruction, expanding trade with China is essential for obtaining foreign exchange
China is Argentina's third largest export target country. Compared with countries such as Brazil and Chile that have gained huge benefits from exporting crops and minerals from China, Argentina still has a lot of room for development
Brazil is also increasing its agricultural exports to China. According to statistics, Brazil accounted for 50% of the total amount of corn imported from all countries and regions from January to October 2024, making it the largest corn importing country for China. The United States has fallen to third place. In 2017, before the outbreak of the US China trade war, the United States ranked second with a share of 27%
In 2023, the proportion of exports to China in Brazil's total exports will increase from 20% in 2016 to 31%. For China, Brazil is also a major food supplier
Analysis suggests that China's consecutive issuance of import permits for agricultural products is a consideration of its long-term confrontation with the United States, aimed at diversifying the sources of grain procurement. South America has become a candidate for replacement due to its numerous agricultural powers
From January to October 2024, China imported the most soybeans from Brazil, accounting for 70% of the total. The United States ranks second with a proportion of approximately 20%. In 2017, Brazilian soybeans accounted for 50% of China's imported soybeans, while American soybeans accounted for over 30%
American corn is no longer popular
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