Japan considers Argentine corn amid lack of Brazil offers

Japanese buyers are weighing the option of procuring corn from Argentina or the US Gulf amid a lack of Brazilian corn for January and February shipments, trading sources said. Japan, like South Korea, has been a large importer of Brazilian corn in 2019 as US prices have been uncompetitive for the best part of the year. Brazil’s trade department data 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. One Japanese trader noted that most buyers would not accept No. 4 corn quality and may instead look to Argentina, where corn quality is much better, despite higher freight costs due to the longer distance. The freight differential for US Gulf and Argentina to Japan is about $6-$8/mt, sources said.

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Source: SP Global

Categories: Macroeconomy/Finance