July 27, 2011

 

Japan importers start 4Q corn purchases

 

 

Japan has started purchasing corn for October-December shipment, buying at least 300,000 tonnes in the last few days.

 

All purchases so far are from the US, an executive with a Tokyo-based commodities trading company said.

 

Traders said purchases would have been higher but for the rise in prices earlier this month.

 

They said compound feed manufacturers bought corn for October shipment, basis cost and freight, around US$2.30 over the December futures contract on the Chicago Board of Trade.

 

Japan bought November and December corn around US$2.20 over the December contract.

 

As the CBOT December corn futures contract is around US$6.78 a bushel, the purchases are close to US$353-$359/ton, C&F.

 

"Prices are still quite high, though they have eased from levels well above US$400/ton reached last month," a Japanese importer said.

 

Most traders said almost half of the corn purchases for September shipment have not yet been priced.

 

They said Japanese buyers are not importing South American corn as it is at least 5% costlier than US corn.

 

Japan is the world's largest corn importer, and buys around 3.2 million tonnes of feed-grade corn each quarter.

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