March 9, 2009
India corn sales climb on favourable market conditions
India's corn exports climbed last week after months of slow sales as market conditions improve to the country's advantage.
Traders said India had exported at least 70,000 tonnes of corn at US$190-200 per tonne mainly to Malaysia and Vietnam, including cost and freight, since the previous week.
Sales have picked up as freight costs have increased, which made South American corn slightly more expensive, said a grains trader.
The trader said Vietnam has done a bulk deal and Malaysia is importing in containers, but the demand is restrained as importers have done forward bookings from South America.
Traders said Vietnam bought 15,000 tonnes of Indian corn at US$202 per tonne (C&F) two weeks ago, one of the first largest deals signed since India eased export restrictions in September.
South America exports corn at US$195-200. Dry bulk freight rate from India is also around US$20 per tonne, half of what it costs to bring South American grain to Asia.
