November 27, 2008
In light of cheaper sea freight charges, Japan made rare corn buys from Black Sea instead of buying from its predominant US suppliers.
European traders said on Wednesday (Nov 26) that the Black Sea-origin corn was thought likely to come from Ukraine. The volume was believed to be between 75,000 and 100,000 tonnes in three consignments for December shipment.
European traders said more Japanese purchases of Ukrainian corn could take place in coming weeks.
"U.S. corn is simply too expensive and the Black Sea region is more price-competitive especially in view of the recent dramatic fall in costs for ocean shipping," one European trader said, explaining the purchase.
Cheaper charters mean more profitable Black Sea grain sales to distant origins. Another reason for the Japanese purchase was that Ukrainian corn is GMO-free as compared to the US variety which has a prevalence of GM corn.