June 25, 2008
Japan feed buyers to conclude corn imports for Q3
Japan's feed buyers will conclude their corn imports of around 4 million tonnes for the third quarter of 2008 by the first week of July, a Tokyo-based grains buyer said Tuesday (June 24, 2008).
Feed buyers will not cut their corn imports as it is difficult to switch from corn to alternatives like barley and wheat, Nobuyuki Chino, a grains buyer with Unipac Grains Ltd., pointed out.
Chino said that grains buyers are getting some relief, however, as ocean freight costs have come down by US$8-US$10/tonne since the beginning of the month.
The US Gulf-Japan ocean freight cost for panamax vessels is US$132/tonne at present.
Feed buyers are likely to wait and watch CBOT corn futures before committing to buy October-December shipments, Chino added.
Usually October-December bookings begin in late July, but feed makers are rattled by high prices. They will wait to see if CBOT corn peaks out before they begin buying for the fourth quarter, he explained.
Japan purchases around 16 million tonnes of corn every year, which mostly come from the US.