Argentina sends GMO corn to China, but will it get in?
"This is a major development, if everything goes well," said one trader at a major export firm, who spoke anonymously.
China is expected to be the second-largest corn producer in the world during the current crop season with the U.S. Department of Agriculture (USDA) projecting the country's output at 212 million tonnes, over 20 percent of the world's crop and behind only the United States, forecast at 359 million tonnes.
But China is expected to import another 7.0 million tonnes to supply its growing livestock producing business, putting it behind top importers South Korea and Japan, according to the USDA. Currently the U.S. is the biggest exporter of corn to China.
"We do not expect any more corn to go (from Argentina) to China until the 2013/14 harvest begins because what's left of the current crop will be more expensive and China will find corn from the United States cheaper to buy," said another Buenos Aires-based trader who asked not to be named.
Argentine farmers are finishing the 2012/13 corn harvest, which started in March and could extend to August.
"We expect to see more shipments of Argentine corn to China from March 2014 onward," the trader said.
- Surging U.S. dollar values weighed on ag markets Friday morning
- Responsible Ag begins auditor training, opens training center
- The World Series of ag: What inning is your business in?
- Midwest Cover Crops Guide available to help growers
- Gladstone Land has $24.6 million farm acquisition in California
- Nutrient removal rates by grain crops