More corn buyers choose Ukraine
A consortium of Malaysian animal feed millers has bought a cargo of up to 45,000 metric tons of Ukrainian corn for shipment in October for around $239/ton, basis cost and freight, trading executives said Wednesday.
This marks a shift in trade because Malaysia has traditionally bought its requirements from South America and the U.S., the executives said.
Cheaper availability from Ukraine has also prompted many buyers in Japan, South Korea and Taiwan to make a shift in sourcing their supply. South Korean millers recently bought optional origin corn, likely to be sourced from Ukraine around $233/ton, C&F for shipment in January.
Ukraine's corn on a delivered basis is around $25/ton cheaper than U.S. corn for shipment in October this year and $10/ton cheaper for shipment in January, traders said.
Concerns over the corn leaf blight fungal disease and delays in shipments from Brazil due to congestion at ports have also resulted in Malaysia turning to Ukraine to source its needs, said a Singapore-based executive with a global commodities trading company.
Malaysia produces around 5 million tons of animal feed annually and buys four to five cargoes totaling 250,000 tons of corn every month.
Ukraine's corn output and exports in the current marketing year that started July 1 will both rise almost 15% to 24 million tons and 15.5 million tons, respectively, according to the latest forecast of the London-based International Grains Council.
Write to Sameer C. Mohindru at email@example.com
(END) Dow Jones Newswires
August 21, 2013 12:17 ET (16:17 GMT)