Chinese buyers have cancelled shipments of Ukrainian-origin animal feed corn totalling several hundred thousand tonnes, traders said April 11.
The precise volumes were unclear, but some traders spoke of about 300,000 tonnes cancelled in up to five Panamax shiploads that had previously been bought for April/May shipment. Most of the cancellations were in the last two weeks, traders said.
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Panamax shipments from China to Ukraine are typically about 60,000 tonnes.
One German trader, speaking on condition of anonymity, said China is thought to be limiting corn imports to support Chinese farmers “in the face of current low prices.”
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Ukraine is a major corn supplier to China. A total of 600,000 tonnes of corn could be exported from Ukraine to China in April and 400,000 in May, Ukrainian brokers said.
A source in Ukraine familiar with the matter said Chinese consumption was falling while warehouses were full and the reluctance to import does not just apply to Ukrainian grain.
“It seems that companies have been advised not to fulfil contracts, but this applies not only to Ukraine, but to all supplies in general,” said the source, who also could not be named because they were not authorized to speak publicly.
