July 14, 2008

China promises Taiwan more corn

China will ship 170,000 tonnes of corn to Taiwan in the second half of the year, fulfilling the remaining portion of an agreement reached earlier this year, traders said on Friday (July 11, 2008).

Beijing had agreed to ship a symbolic amount of 200,000 tonnes to Taiwan after ties between the mainland and the self-ruled island began warming in the runup to the election of a new, more pro-Chinese president, Ma Ying-jeou.

COFCO Co. Ltd, the country's largest trading firm, sold the corn to Taiwan at prices between US$350 to US$400 per tonne including cost and freight, traders said.

Traders said China only agreed to send 50,000 tonnes this year to North Korea, short of the 100,000 tonnes requested.

China exported 26,235 tonnes of corn to Taiwan in April.

China, once one of the world's major corn exporters, has virtually banned corn exports as rising global demand for corn threatened to bring higher prices and inflation to the country if exports continue.