China’s grain imports jumped last year as the world’s biggest buyer was lured by cheaper overseas supplies, but there are concerns that the hefty inflows will pile further pressure on domestic prices.

Incoming corn cargoes surged 32% to 27.13 million tons, just below the record reached in 2021, according to customs data Thursday. This included a large amount of Brazilian grain after China green-lighted shipments from the country in a drive to diversify suppliers.

The additional grain risks hurting the local market as the supplies compete for space with a bigger harvest and disappointing demand, the Economic Daily said in a report Thursday. Corn prices have slumped to their lowest level in three years and the state has needed to step up stockpiling to support the market.

“Most of the corn cargoes were booked around middle of the year and profits were quite good at that time,” said Cherry Zhang, analyst with Shanghai JC Intelligence Co., a China-based commodity consultancy. 

Local prices of soybean meal, used in livestock feed along with corn, have also plunged to the lowest in three years. Imports of soybeans climbed 11% last year to 99.41 million tons, almost matching the all-time high in 2020, according to customs data published earlier this month.