August 27, 2020
Vietnam corn importers cancel, defer Aug/Sep shipments
Corn buyers in Vietnam, one of the world's fastest growing feed grain markets, are postponing purchases and have cancelled some cargoes amid oversupply, two trade sources told Reuters.
Importers had earlier booked nearly three million tonnes of mainly South American corn for arrival in August and September, hoping for a pick-up in demand.
"They overbought but the demand remained weak," said one of the sources who is a Singapore-based trader at an international trading company.
"Now they are looking at deferring purchases for later months, whenever possible, November or even December."
Traders estimated the delays to be in the range of four to nine Panamax-sized vessels, each with a capacity of about 60,000 tonnes.
Vietnam, which has seen corn imports surge 10-fold in a decade, is expected to take 11.5 million tonnes in 2020/21, according to the United States Department of Agriculture.
"Honestly, more people on the supplier side are willing to buy back as prices have risen," said the second source.
"Going forward, we don't expect more importers to cancel deals since prices are rising."
Corn futures on the Chicago Board of Trade rose about 4% this week, gaining for a third consecutive week as adverse weather impacts US crops.
South American corn to Vietnam is now quoted at US$217 a tonne for October shipments, compared with about US$200 a tonne a few weeks ago.