November 19, 2012

 

 

Due to delays of corn imports from Brazil, Taiwan looks to the U.S. to meet its local corn demand.

 

The arrival of at least four panamax vessels of corn from Brazil was delayed in September and another three cargoes in October, they said.

 

"Many buyers have bought US corn in containers to meet immediate needs," said a Taipei-based importer.

 

Last week, Japanese importers said more than 900,000 tonnes of corn from Brazil had been delayed and cargoes are taking up to two months to be loaded at Brazilian ports due to heavy congestion and competition for berths with other commodities.

 

She said US corn in containers is being offered for December shipment on a delivered basis around a US$0.155-a-bushel premium over the near-month contract on the Chicago Board of Trade compared with bulk shipments around a US$0.188-190 per bushel premium.

 

Two months ago, US corn container shipments were at a premium to bulk due to strong demand, but buyers who were short of supply still had to make emergency purchases.

 

Importers are avoiding buying more bulk corn shipments because delayed cargoes are expected to arrive later this month and in December.

 

For January-March shipment, there will be more corn imports from the US because of less supply from Brazil, said a second importer in Taipei.

 

Another option available is to secure corn from Ukraine, but buyers are reluctant due to quality concerns and fears of ports getting frozen during the coming winter, he said.

 

According to industry estimates, Taiwan's bulk corn imports in October totaled 225,000 tonnes and are expected to rise to 440,000 tonnes in November and 500,000 tonnes in December

 

Taiwan is one of the world's largest corn importers, buying close to 4.3 million tonnes annually, according to the London-based International Grains Council.