China Restricts Exports of Corn Starch, Signaling Supply Worries

Despite the relatively small volume of exports, the move underscores Beijing’s concerns over grain supplies and rising prices. China imports corn mainly from the US, which may face a smaller harvest this season, and Ukraine, where shipments are choked off after Russia’s invasion. While China produces most of the corn it consumes, poor weather has threatened output.

“Corn prices are high and cheaper Ukraine supplies cannot be shipped easily,” Ma said. “Exporting corn starch would further push up domestic prices.”

Traders and processors that Bloomberg spoke to confirmed the curbs, without giving details on how the notice was communicated. The agriculture ministry didn’t respond to requests for comment. Monday is a public holiday in China.

Customs data show China’s corn starch exports fell to just 900 tons in August from more than 40,000 tons in July and 23,240 tons a year earlier. The product is shipped mainly to the Philippines, Indonesia, Thailand and Malaysia.

Global benchmark corn prices have jumped about 15% this year amid the war in Ukraine and adverse weather in major producing regions including the US and Europe. To reduce supply risks, China has tried to diversify its corn imports and is accelerating shipments from Brazil.