Miller Magazine Issue: 151 July 2022

42 MILLER / JULY 2022 NEWS Covantis announced that over 310 million metric tons of agricultural commodities have been executed through the platform since March 2021. In 2022 Covantis captured in Brazil a market share of 70% for soybeans, corn and soy- bean meal. 80% of all volumes nominated by charterers have been passed through the string up to the shipper, en- abling efficiency in post trade execution processes. Ranging over 30 agri firms across 100 legal entities, Co- vantis has been used for execution of over 1’600 vessels from Brazil origin. The execution network is supported by dozens of global agri firms, but as well by local Brazilian companies such as Agraria, Agribrasil, Amaggi, ALZ, Car- amuru, Coamo, Copacol, Fiagril and Nova Agri, with many joining in the last months. “We are looking forward to further expand our network in order to digitalize the Brazilian agri market.” said Sorin Albeanu, Head of Commercial. Brazilian grains exporters adopt Covantis China and Brazil announced that they had signed a Pro- tocol on Phytosanitary Requirements which would allow for the export of Brazilian corn to China. According to available information, before trade can begin, export establishments must first be registered with China's government. However, should trade in large quantities commence it could reshape global corn trade flows. In 2020/21 (Oct- Sep), China imported nearly 30 million tons of corn; nearly 70 percent was imported from the Unit- ed States and most of the remainder from Ukraine. In March 2022, the most recent month of published data, Ukraine exported just 1.1 million tons of corn, with about 400,000 tons going to China. In comparison, corn exports totaled 2.6 million tons a year ago, with nearly half of that volume going to China. Given that Ukraine corn exports are currently con- strained by the ongoing war, China appears to be looking elsewhere for supplies. Brazil is a good candidate for an alternative supplier during the remainder of 2021/22 and 2022/23. Production for the current safrinha crop has recovered from the pri- or year and exportable supplies are expected to be ample through the end of the calendar year. Moreover, production and exports for the out-year are forecast at yet another re- cord high. China is forecast to be the world’s largest corn importer in both 2021/22 and 2022/23, though year-to-year imports are down to 18 million tons mostly due to the aforemen- tioned constraints on Ukraine. China’s corn imports are highly concentrated. Though the timing and potential vol- ume of Brazilian corn imports are uncertain, this agreement represents an attempt at diversification for China as well as a potentially major market for Brazil. China looks to diversify its corn suppliers