Monday, May 27, 2024

China Has Imported Too Much Corn For Its Pigs

China has imported so much corn for its pigs that it has collapsed its ports. More grain purchases as herds recover from swine fever. China will import up to 26 million tons of corn this year and next.

China has embarked on an unprecedented surge in corn purchases this year, with some vessels being delayed for up to a month out of southern ports due to congestion, incurring high demurrage fees (delayed by a preset deadline). sometimes to load or unload a ship).

At least two ships laden with American corn have been waiting for weeks before they could dock Thursday, according to Bloomberg ship tracking data . The Priscilla, with 71,400 tons, had been anchored off the port of Zhanjiang, in Guangdong province, since May 11, and the Krini, with 75,100 tons, had been waiting since May 16 near the port of Huangpu, in the same Province.

Grain purchases from China have increased this year as pig herds rebound from a devastating outbreak of African swine fever. Imports of corn have quadrupled in the first four months compared to the previous year , while those of sorghum increased fivefold in April compared to the previous year. Barley shipments have also increased. The delays can add to the rising costs of raw materials that the government is struggling to control.

The National Development and Reform Commission, which is the head of the country’s economic planning, recently highlighted the need to manage long and complex supply chains when it comes to stabilizing prices , and urged regional authorities to maintain supply of all type of products, from corn to pork and vegetables.

A Chinese buyer has claimed that his cargo of US corn arrived in February, but had to wait a month before unloading it at the Nantong port in eastern Jiangsu province, a delay that resulted in heavy delay charges.

Feed mills are not the only buyers. The government has been sending corn from Ukraine and the US to replenish depleted state reserves after years of sales. According to the US Department of Agriculture, China will import a record 26 million tons of corn this season and the next.

China is also the world’s largest soybean importer, but many buyers are port-based shredders with their own silos. In the case of corn, the buyers are mainly state feed mills and silos, many of which are located indoors.

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