Wednesday 12 October 2011
The grain market
Japan and South Korea, two of the world's largest importers of feed grains, are likely to step up purchases with global prices at their lowest levels in more than a month, trading executives said Monday.
The purchases by the East Asian importers may provide at least some strength to prices after the downward move.
Japan is yet to buy a quarter of 3.2 million metric tons of feed-grade corn that it requires for October-December shipment, while buyers in South Korea are seeking more than a combined million tons of feed corn and feed wheat, they said.
South Korea has been mostly away from the market for several weeks and is worth watching due to its big purchase volumes following the recent slide in prices, said an executive with a global commodities trading company.
With Chicago Board of Trade December corn futures having fallen below $7.00 a bushel, buyers will most likely move in to lock in at least some of their
supply needs, he said.
South Korea plans to buy at least 15 cargoes of corn and six cargoes of wheat--each of 55,000 tons--for December-to-January arrival, according to traders.
South Korea's last major feed corn purchase was around $362/ton, cost and freight, but traders expect new deals below $350/ton. C&F offers for feed until last week were above $300/ton, but buyers are keen to get cargoes for around $273.90/ton, C&F, the price they made purchases at in end-June.
"Japan is also slow in finalizing prices of the imports already made so far because traders are expecting a downward correction in prices," said a Tokyo-based importer.
The average C&F price of corn imported by Japan--the world's largest importer--for October-November shipment is above $350/ton as these prices were finalized when CBOT futures were above $7.00/bushel...
Source: newsroom - farmingnewsdaily.co.uk
Back to News Headlines