Japan has purchased 1.8 million metric tons of U.S. feed-grade corn for April-June shipment, stepping up purchases from the world's top exporter after a delay in this quarter's shipments from Ukraine, trading executives said Wednesday.

The country is the world's top importer, buying around 3.3 million tons of feed grade corn alone every quarter.

"It covered more than 45% of its January-March needs with European buys, but the bulk of its purchases for April-June have been from the U.S.," an executive said on the sidelines of a grain conference.

Japanese compound feed manufacturers have purchased U.S. corn, basis cost and freight, for the next quarter at about 203 cents over the May and July futures contract on the Chicago Board of Trade. Corn from Ukraine and Argentina is being offered around 175 cents and 200 cents over CBOT May futures.

Japan buys corn at a premium to CBOT futures and locks in the final price at any date of its choosing.

So far, final pricing hasn't been done for most of the cargoes purchased as buyers expect CBOT futures to fall in the next few months in anticipation of record plantings in top producer U.S.

Earlier, Japan purchased a few spilt cargoes of Argentinian corn and sorghum to cut costs but stopped purchases after prices rose on the back of dry weather in South America and as the gap with U.S. offers narrowed.

The country is yet to cover 250,000 tons of its March requirements, which may also come from the U.S.

Final pricing of around 50% of March shipments is complete, mostly done at a cost-and-freight premium of 195-205 cents, done at an average CBOT March contract price of $6.50 a bushel.

January and February purchases were cheaper, with the premium locked in at average futures prices of $6.10 and $6.20 a bushel.

-By Sameer Mohindru, Dow Jones Newswires; +(65) 6415-4085; sameer.mohindru@dowjones.com

(END) Dow Jones Newswires

February 22, 2012 02:10 ET (07:10 GMT)