December 6, 2011

Japan has made its first purchases of the grain from Argentina's 2012 crop, to be harvested early next year, trading executives said Monday (Dec 5).

Japan has bought at least three split or combination cargoes from Argentina, they said. All cargoes contain around 27,500 tonnes each of corn and sorghum for shipment between March 15 and April 15, they said on the sidelines of an agriculture conference.

A total of 82,500 tonnes each of corn and sorghum were purchased.

More purchase deals are likely for Argentina's corn because it is up to US$5 per tonne cheaper than US corn, said an executive with a global commodities trading company. US corn is currently offered around US$315/tonne, cost and freight, for shipment to Japanese ports in March.

Traders said costs can be cut while importing corn by also buying sorghum for shipment in the same cargo. Both are ingredients for making animal feed.