May 3, 2007

Israel bids for US corn, corn products, soymeal

After being quiet in recent months, Israel has issued a tender for 14,000 tonnes of US-origin corn, 7,000 tonnes of soymeal and up to 35,000 tonnes of US corn products, European traders said on Wednesday (May 2).

Shipment of all grains is on June 10 to June 30 and bidding deadline is on May 3.

The corn products comprise 14,000 to 21,000 tonnes of corn gluten feed and 7,000 to 14,000 tonnes of distillers' grain dried soluble (DDGS), a by product of biofuel production.

Israel's last reported purchase was on February 9 when it bought about 36,000 tonnes of US-origin corn products in a tender.

Since that purchase international ocean shipping costs have risen dramatically.

The Baltic Exchange's Panamax freight index for bulk carriers to transport grains and metal ores closed at 5,827 points on Tuesday, up from under 4,000 points at the end of January 2007 and close to its 6,110 point all-time high in 2004.

A trader said that while US corn still appeals in the world market, a price increase is looming if the US increase in US plantings is less than expected in coming weeks. 

He added that waiting for shipping costs to go down will not do any good as it will not be likely in the coming months.