May 15, 2007

 

Taiwan seen to purchase US corn and wheat via tenders, Japan market seen quiet

 

 

Taiwanese importers are seen to bid for US corn and wheat this week while buyers from Japan are seen to be inactive in the grains market due to high freight rates.

 

Taiwan's buying through open tenders has become less popular in recent months as buyers seek private container shipments amid record dry bulk prices.

 

Taiwan traders said buyers heavily prefer private deals for corn and soy trade in cargo containers due to its lower price compared to the traditional dry carriers. 

 

Containers that return to Asia from the United States empty are instead loaded with raw commodities such as corn or wheat and offer a cheaper alternative for buyers seeking to cut costs.

 

Traders said there was talk of a corn tender by Members Feed Industry Group, one of the island's major corn buying associations, although an official with the group declined to confirm the news.

 

The Taiwan Flour Mills Association is also considering a buy tender this week although an official from the group refused to comment, traders said.

 

On the other hand, soybean importers from Japan are planning to start buying the grains for its July shipments after largely completing its requirements for June, but high freight rates were making them less enthusiastic to make a purchase.

 

A trader from a Japanese trading house said deals for July are proceeding very slowly as all eyes are waiting to freight rates to go down.

 

Japanese buyers usually acquire about 240,000 to 250,000 tonnes on average each month.

 

Japanese oilseed crushers usually buy Brazilian soybeans around this time of year, but high vessel rates were hampering them for further purchases, the trader said.

 

Activity in the Japanese corn market was slow due to rising shipping rates.

 

Requirements for feed corn in Japan were estimated at roughly 3.1 million tonnes each quarter.