(Bloomberg) — Argentina is preparing to send its first corn shipment to China in 15 years, the latest step between the two countries to expand agricultural trade.
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The shipments being processed by COFCO International Ltd. could be the first since China reopened its doors to Argentine corn after lengthy diplomatic talks, said Gustavo Idigoras, president of Cera-SEC, a national crop export group whose members include major agricultural trading houses.
A few weeks ago, Argentina completed the necessary steps to obtain Beijing’s approval to open the Chinese market to Argentine corn, after reaching an agreement on sanitary requirements last year. Argentina’s corn harvest is now in full swing, with 55% of the crop harvested as of June 26.
The corn shipments to China suggest the two countries are likely to maintain strong trade ties under Javier Milei, who once vowed to scale back ties with Beijing if he became Argentina’s president. Milei took office in December. Chinese trade and investment drive broad sectors of Argentina’s economy, from commodities and energy to banking.
In January, Chinese customs authorities also allowed traders in Argentina to export wheat for the first time.
China is the world’s largest importer of corn for cattle. Traditionally, the Asian giant has imported the grain from the United States, but has increasingly turned to Brazil after the country was given the green light to import supplies in 2022.
Farmers in China continue to suffer from severe weather conditions ranging from floods to droughts, threatening crops including corn and putting pressure on the country’s leaders working to boost food security. Dry conditions in the north have damaged wheat crops and delayed plantings of corn and soybeans.
Syngenta AG has chartered the MSXT Eco to carry 66,000 metric tons of soybeans to China, one of several routine shipments of Argentine soybeans to Asia. A port list published by shipping agency Napsa had previously incorrectly listed the cargo as corn.
(Adds harvest progress in third paragraph. Previous version corrected to show Syngenta’s shipment will carry soybeans, not corn.)
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