January 10, 2007

China to release 300,000 tonnes of corn to Taiwan

China might sell 300,000 tonnes of corn to Taiwan, less than the island's feed makers had sought, after a ban on corn imports was temporarily lifted to ease tight supply and high prices, a Taiwan feed official said.

Taiwan initially wanted to buy 500,000 tonnes.

Earlier, Taiwan's corn demand was met by the US. The supply has been drying up as more and more corn is being pumped into biofuel use.

Taiwan temporarily lifted a ban on Chinese corn imports in November. This is the fourth time it has done so since 2002 to ease the impact of high global prices and tight supply on the island's livestock breeders, particularly swine producers. Corn imports along with other food products from China were banned in Taiwan for national security and quality reasons.

Incidentally Chinese corn exports have not been able to reach Taiwan due to tight domestic supply caused by a slow harvest and spiralling domestic prices.