May 31, 2007

Israeli buyers purchase Argentine corn, soymeal

A group of Israeli private traders has bought about 54,000 tonnes of corn and about 7,000 tonnes of soymeal from Argentina in a tender which closed on Wednesday in an undisclosed price, European traders said.

The consortium had earlier sought for bids up to 56,000 tonnes of corn and up to 7,000 tonnes of soymeal from the United States or South America.

A trader said Argentina corn is much lower than the US as the FOB (freight on board) was more than enough to compensate for the higher ocean shipping charges, making US corn less competitive in the coming weeks.

The tender specified shipment for number two yellow corn from the United States is between July 5 to 25 and from South America between July 1 to 20.

On May 18 an Israeli consortium purchased about 50,000 tonnes of corn and about 8,000 tonnes of soymeal from Argentina after tendering for US or South American grain.

The last large Israeli corn purchase was in February 8 at 50,000 tonnes of optional origin.

Since that purchase international ocean shipping costs have risen sharply, largely because of China's huge continuing demand for commodities.

But bulk carrier charter rates have fallen from their recent highs in the past two weeks, which traders said might help generate more demand from grain importing countries.