Chinese importers are refusing Ukrainian corn, trying to support domestic farmers.
About it reports Bloomberg, citing people with knowledge of the matter. China has already abandoned four of the five shipments booked for April-June. This has happened over the past two weeks, and future shipments from Ukraine are in jeopardy.
Chinese customs officials have asked traders to limit the supply of foreign corn into customs zones to ease a domestic supply glut and support prices for farmers ahead of the planting season. Traders can bring corn into customs areas and mix it with other ingredients into animal feed before importing it at a lower tax rate.
China's refusal of Ukrainian corn could hit world prices, since it is the largest importer of corn in the world. In addition, world prices are already under pressure due to generous harvests in Brazil and the USA.
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