Taiwan Sugar Corp. Thursday canceled a tender to import 23,000 metric tons of U.S. corn and 12,000 tons of U.S. soybeans, citing high prices, trading executives said.

TSC was seeking the cargo for February-March shipment.

The lowest offer was made by Agrex Inc. It offered corn at US$353.28/ton on a flat price basis and at a US$1.9637-a-bushel premium over the May contract on the Chicago Board of Trade, basis cost and freight.

The company also made the lowest offer price for soybeans at US$617.43/ton on a flat price basis and at a US$2.6280/bushel premium over the CBOT May futures contract, C&F.

The corn and soybean prices are around US$21/ton and US$35/ton lower than TSC's purchases at the end of October but still costlier than South American origin corn and soybeans.

U.S. origin corn and soybeans are selling at a large premium to South American corn and soybeans because a severe drought has dragged down U.S. output.

Last week, buyers in South Korea purchased optional-origin corn at US$314/ton, C&F, for arrival by June. On a delivered basis at East Asian ports, new crop South American corn for May shipment is being offered at a discount of almost US$40/ton to U.S. corn.

New crop Brazilian soybeans that will be harvested early next year are trading at a US$25/ton discount to the U.S. origin, basis C&F, East Asian ports.

Write to Sameer C. Mohindru at sameer.mohindru@dowjones.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

December 27, 2012 06:09 ET (11:09 GMT)