In China, importation of corn from the US has been plummeting, as domestic demand has fallen, and cheaper prices have been available from fellow BRICS member nation Brazil, according to a new Bloomberg report on Friday.

Reportedly, 832,000 tons of US corn orders have been canceled by Chinese buyers over the past three weeks as the nation has been increasing purchases from its Brazil, which is on course to overtake the United States as the biggest exporter of corn this year.

The report noted that traders feel US corn has become less competitive, with supplies from Brazil coming in at about $30 per ton cheaper for delivery in the third quarter. The cancelations were also  attributed to weak domestic demand for corn as animal feed.

In an interview with Bloomberg, Wang Xiaoyang, a senior analyst with Sinolink Futures said, “Demand for corn is really poor. Feed producers are using a lot of wheat to replace corn as prices keep falling.”

At the same time, wheat prices are about 180 yuan ($26) per ton cheaper than corn in Henan, with expectations for further declines. Analysts note that struggling hog farmers are looking to save money, “so replacing corn with wheat is a natural choice.”

According to customs data, Chinese corn imports peaked at 28 million tons in 2021, before declining to roughly 21 million tons in 2022.

According to reports, China is seeking to move away from its heavy reliance on the United States and Ukraine for its corn supplies, due to the risk of future geopolitical turmoil impacting the nation’s food security. Just this month, China took delivery of its first shipment of feed corn from South Africa, another fellow BRICS nation.