November 2, 2007

 

Israel buying more US corn as Ukraine restricts grain exports

 

 

Israel is buying heavily into US corn as Ukraine, a traditional grain supplier, shuts its doors on exports.

 

This has caused Israeli feed millers to buy heavily into US corn in recent weeks, traders said.

 

This week, a consortium of Israeli private buyers purchased about 60,000 tonnes of US-origin corn in a tender for up to 56,000 tonnes.

 

The consortium also bought around 30,000 tonnes of corn products comprising corn gluten feed and distillers' grain dried soluble (DDGS)

 

In a previous tender on Oct 11, a consortium bought 100,000 tonnes of US corn also after seeking bids for 56,000 tonnes.

 

Shipment for all was between Feb 20 to March 10, 2008.

 

Traders said the purchase highlighted the current dominance of US corn in export markets, with high shipping costs putting grain supplies from Brazil and Argentina at a relative disadvantage.

 

However, with Argentina's new crop approaching, the US could start losing its domination from April onwards, one trader said.

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