January 19, 2004

Taiwan Buys 25,000 MT Chinese Corn

Taiwan's R.O.C. Federation of Swine Cooperatives purchased 25,000 metric tons of Chinese corn recently, said an official from the cooperative Monday.

The deal was concluded last week around US$160 a metric ton, cost and freight, through FoodChina.com, he said, adding the cargo is expected to arrive before the end of January.

FoodChina.com shareholders include China National Cereals, Oils & Foodstuffs Import & Export Corp. and Taiwan's DaChan Greatwall Group, among others.

This is the second cargo of Chinese corn that the cooperative has purchased, and Taiwan's third since late last year. In November 2003, Taiwan temporarily lifted a 50-year ban on Chinese corn and soymeal imports up to Jan. 31, 2004. The livestock industry had appealed to the government to lift the ban after domestic prices in Taiwan rose sharply due to strong corn import prices and high freight costs from the U.S.

The cooperative's first cargo of Chinese corn totaling 20,000 tons has arrived in Taiwan, said traders. That deal was concluded with Cofco in December around US$155/ton, C&F.

Taiwan's Greatwall Enterprise Co. also bought one cargo of 22,000 tons from Cofco recently, at US$160.50/ton, C&F. That cargo is expected to arrive before the end of January.

The three deals bring the total of Chinese corn purchased by Taiwan to around 67,000 tons.

Taiwan is a staunch buyer of U.S. grains and imports around 5.2 million tons of U.S. corn a year, mostly for feed purposes. The country traditionally doesn't buy grains from China due to years of political animosity with the mainland.

The last time Taiwan lifted the ban on Chinese corn was in late October 2002, when U.S. corn shipments were temporarily disrupted because of a labor lockout at U.S. West Coast ports. The ban was reinstated at the start of 2003. During that period, Taiwan imported around 70,000 tons of Chinese corn.