January 05, 2004

 

 

Taiwan Buys 20,000 MT Chinese Corn

 

Taiwan has bought 20,000 metric tons of feed corn from China, an official from Taiwan's R.O.C. Federation of Swine Cooperatives said Monday.

 

The deal was finalized "a few weeks ago...slightly above US$155 a ton" cost and freight, said the official.

 

The cargo is expected to arrive in Taiwan around Jan. 15, he said.

 

Taiwan isn't likely to buy more corn from China, as the latter is now experiencing delivery problems because of lower stocks, said the official.

 

He was responding to talk in Taiwan that a hog association has bought corn from China National Cereals, Oils & Foodstuffs Import & Export Corp.

 

Explaining why the official revealed the transacted price at slightly above US$155/ton, a Taipei-based trader familiar with the deal said US$155 is the price if the cargo is delivered to Taichung, and US$155.75/ton if the cargo is delivered to an additional port, Kaohsiung.

 

A Cofco official in Beijing said the cargo will be loaded this week and will arrive in Taiwan before the Lunar New Year, which starts Jan. 22.

 

Cofco is one of two authorized corn exporters in China.

 

The R.O.C. Federation of Swine Cooperatives represents the majority of hog farmers in Taiwan.

 

In November last year, Taiwan temporarily lifted a 50-year ban on Chinese corn and soymeal imports up to Jan. 31, 2004. The livestock industry had appealed to the government to lift the ban after domestic prices in Taiwan rose sharply on strong corn import prices and high freight costs from the U.S.

 

Taiwan is a staunch buyer of U.S. grains and imports around 5.2 million tons of U.S. corn a year, mostly for feed purposes.

 

Taiwan traditionally doesn't buy grains from China due to years of political animosity with the mainland. The last time Taiwan lifted the ban on Chinese corn was in late October 2002, when U.S. corn shipments were temporarily disrupted because of a labor lockout at U.S. West Coast ports. The ban was reinstated at the start of 2003. In that period, Taiwan imported around 70,000 tons of Chinese corn.

 

This time round, however, Taiwan is unlikely to import more than 20,000 tons of Chinese corn, as China has ceased making offers for January and February shipments because of tight domestic supplies, traders said.