April 20, 2007

China likely to issue 3-million tonne corn export quota for 2007

China is likely to issue the second batch of 2007 corn export quotas, bringing total exports to 3 million tonnes for this year, traders and industry officials said on Thursday (Apr 19).

Chinese corn suppliers were likely to adjust prices to US$195 a tonne, free-on-board, from around US$200 to attract more buyers, they said.

Last week, China issued a 1.2-million tonne quota, the first for the year, following a bumper 2006 crop. Sales have been running well, officials said.

For imports, traders said Argentine corn was the most competitive in Asia at the moment, seen at about US$215 a tonne, delivered to South Korea. US corn was a few dollars higher.

Chinese corn would cost about US$213-$214 a tonne, delivered to South Korea, where buyers expect a discount of about US$5 a tonne for Chinese grain compared to those from other origins.