Japan weighes US, Argentina beginning corn amidst lack of Brazil offers for Jan, FebPosted by Gravgaard McKenna on February 24th, 2021 . Japanese customers are considering the choice of procuring corn from Argentina or the US Gulf in the middle of an absence of Brazilian corn for January as well as February shipments, trading sources claimed Friday. Japan, like South Korea, has actually been a huge importer of Brazilian corn in 2019 as US costs have actually been uncompetitive for the best component of the year. Brazil's nationwide farming company Companhia Nacional de Abastecimento, or Conab, forecast corn exports for the 2018-19 marketing year at 39 million mt. The profession division information showed that Brazil exported 32.95 million mt of corn over February 1-November 15, as reported by S&P Global Platts on November 19. For the new crop season that started in September, United States farmers remain to encounter troubles because of hold-ups in the corn harvest and top quality concerns. Offers for FOB United States PNW No. 3 corn freights were listened to around 120 cents/bushel over the CBOT March (H) contract and also United States Gulf cargoes listened to supplied around 65 c/bu over the same contract. From Brazil, January deals were suggested at 85 c/bushel over the futures Friday. The cash basis costs have actually climbed about 20% over the past two weeks because of proceeding Eastern demand. One investor noted that some United States vendors were supplying a 10 c/bu price cut for No. 4 corn, which was lower high quality in toxic substance degrees, broken corn and also foreign product or bcfm, etc. No. 3 corn has 4% bcfm, while No. 4 corn has 5% bcfm. One Japanese trader kept in mind that many purchasers would decline No. 4 corn high quality as well as may instead aim to Argentina, where corn quality is much better, regardless of higher freight prices due to the longer distance. The products differential for US Gulf and Argentina to Japan has to do with -$ 8/mt, resources said. Corn on an FOB Argentina basis for Pananax-sized delivery in January was heard provided in the mid-60s c/bu over the March (H), which was around the very same cost as US Gulf corn Friday. One more Japanese investors did not expect Argentinian corn to feature in Japanese end-user purchase, believing they would like to purchase United States corn with a discount on high quality. " chemicals used in water treatment is everything about the price," he said. Argentina corn is taken into consideration too "difficult" for Japanese starch companies as well as one trading resource claimed he is not a fan of purchasing from Argentina as a result of past experience with vessel loading problems as well as hold-ups. The investor included that a price cut of 15 c/bu to US corn costs might motivate some Japanese buyers to take into consideration the product.Like it? Share it! More by this author |