August 13, 2012

 

Pakistan exports 97,000 tonnes corn to Indonesia

 

 

For shipment between August and October, Pakistan has exported up to 97,000 tonnes of corn in four cargoes to Indonesia.

 

Pakistan usually exports only small volumes of corn. But with global prices rising to an all-time high last month due to a severe drought in the US, the world's top exporter, buyers are looking for relatively cheaper sources.

 

A rise in Indian prices and concern that the country may ban exports due to deficient rains has also prompted buyers to turn to Pakistan to meet their needs.

 

One 25,000-tonne Pakistani cargo was sold around US$280/tonne for end-August shipment and one cargo each between 20,000-25,000 tonnes for August 15-September 15 and September 15-October 15 shipment around US$285-290/tonne and US$300-304/tonne, all free-on-board, the executives said.

 

A 22,000-tonne cargo, sold last month around US$255/tonne, FOB, is now loading at Karachi port, they said.

 

In addition, Pakistan has also sold close to 80,000 tonnes of corn for export to Southeast Asia and the Middle East in containers, according to shipping executives and cargo surveyors.

 

Pakistan's corn exports in containers from the latest harvest started around US$235/tonne, FOB, in June, but most sales were between US$255/tonne and US$275/tonne and now offers are around US$300/tonne or slightly higher, said an exporter in Karachi.

 

Pakistan's corn can be delivered in Indonesia and Malaysia at less than US$330/tonne compared with US prices of almost US$390/tonne. India's last major corn sale was around US$287/tonne, FOB, and hardly any sales are taking place now due to a lack of supply.

 

"Exporters are quoting a wide range of prices, but there aren't any serious offers because a ban is possible on exports and [there are] high earnings from local sales," said a trader in Mumbai.

 

India's corn plantings are running behind schedule due to deficient rains, and traders are mostly executing export contracts finalised earlier. Export sales from Pakistan are also expected to ebb after October.

 

The winter corn harvest has a high moisture level of more than 15% compared with a maximum 12% required for exports, one of the exporters in Pakistan said.