June 22, 2023

Taiwan's MFIG buys 65,000 tonnes of animal feed corn from Brazil

In an international tender on Wednesday, Taiwan's MFIG purchasing group has purchased approximately 65,000 metric tonnes of animal feed corn, expected to be sourced from Brazil, according to European traders familiar with the matter, Nasdaq reported.

The trading house Viterra is believed to have made the sale, with the yellow corn purchased at an estimated premium of 82.79 US cents a bushel c&f (cost and freight) over the Chicago December 2023 corn contract CZ3, the traders said.

The tender saw a dominance of Brazilian corn, with nine other trading houses offering the full 65,000 metric tonnes. Other premiums were offered in a range between 83.50 to 133.41 US cents a bushel c&f over the Chicago December contract.

Notably, there were no reported offers of corn from the US or South Africa. Ine offer of 65,000 tonnes of Argentine corn was made at 87.00 US cents a bushel c&f over the Chicago December contract.

Traders explained that due to concerns about poor quality, the acceptance of Argentine corn would be contingent on it being the lowest-priced offer and at least US$0.04 per bushel below the second cheapest offer from other origins.

As for shipment details, the tender specified that if the corn is sourced from the US Gulf, Brazil, or Argentina, shipment is sought between September 4 and September 23. If sourced from the US Pacific Northwest coast or South Africa, shipment is sought between September 19 and October 8.

-      Nasdaq