Brazil and China have concluded some key negotiations for corn exports to China, according to a statement released by Brazil's Agriculture Ministry.

China's Ministry of Commerce said China's General Administration of Customs had signed an agreement with Brazil to allow imports of Brazilian corn as both countries seek to boost trade in agricultural products between the two countries. Over the past two years, China's imports of feed grains, especially corn, have grown as corn acreage has remained largely flat, while demand has continued to rise. China typically imports corn from the US and Ukraine. Ukraine has also been China's top supplier in recent years, but after the outbreak of the Russian-Ukrainian conflict, Ukraine's corn exports were restricted.

From January to April this year, China imported 9.31 million tons of corn, an increase of 8.5% year-on-year. For comparison, China imported 28.35 million tons of corn in 2021, an increase of 152.2% year-on-year.

Brazil and China have signed four agreements on Brazil's exports of cottonseed meal, thermally processed beef and melons to China, and China's exports of pears to Brazil, Brazil's agriculture ministry said in a separate statement. The two sides agreed to work towards completing negotiations on Brazil's exports of sesame, sorghum and grapes to China by the end of 2022. Future talks will also focus on allowing Brazil to export fish, poultry and pork meal to China, and China to export apples to Brazil.

In May, the corn inventory in the main domestic producing areas continued to decline, the main grain sources will continue to be transferred to the warehouses of traders, and the consumption of the breeding market on the demand side will further increase. The traders have strong bullish sentiment and strong willingness to support prices. We believe that in general, the corn market in May will continue to be in a state of overall balance between supply and demand, and demand will continue to grow slowly with guaranteed supply. The market lacks the power to push the market up sharply.

We predict that most of the time in May, the price of corn will continue to rise slowly. The possibility of short-term correction in the local market will still exist, but the monthly average price of the main producing areas will continue to rise slightly from the previous month.

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