Taiwan purchased 65,000 tons of Brazilian corn at a price significantly lower than in similar tenders in May

Taiwanese group MFIG purchased 65,000 tons of feed corn of Brazilian origin from CJ International in an international tender on June 17, Reuters reported.

The purchase price was the value of the December CBOT corn futures contract plus a premium of 220.44 cents per bushel, equivalent to approximately $262/ton on a C&F basis.

According to the terms of the tender, the grain should be delivered between August 14 and September 2 or between August 29 and September 17, depending on the country of origin.

According to traders, the main competition at the tender was corn from South America. In particular, participants offered:

• Brazil - five batches of 65 thousand tons and one batch of 58 thousand tons;

• Argentina — three batches of 65 thousand tons each;

• USA - one batch of 52 thousand tons.

Argentine corn from Bunge was offered at $268/t C&F, American corn from CHS was offered at $273/t C&F, while Dreyfus was offering Brazilian corn at $275/t C&F.

The new tender confirmed a further decline in world corn prices. For comparison, in late May, the South Korean company Nonghyup Feed Inc. (NOFI) held a tender for the purchase of 138 thousand tons of feed corn, in which it purchased only one batch of 68 thousand tons with delivery by September 25 at a price of $ 278.49 / ton C&F.

Thus, Taiwan's current purchase price was more than $16/t lower than the price of a similar purchase in South Korea less than a month ago.

The decline in the cost of corn delivered to Asian countries continues to put pressure on the market for the new crop. For Ukraine, this means the continuation of a difficult price situation on the eve of the new season.

Currently, prices for new crop corn in Ukraine are announced at $210–215/t with delivery to Black Sea ports in October–December, while prices for deliveries in July–August remain higher — at $217–222/t. Current corn prices for today, statistics by regions of Ukraine, market analytics and prices in ports are available on the page "Corn prices "

Given the high harvest forecasts in major producing countries and active competition between Brazil, Argentina and the USA for Asian markets, pressure on world corn prices may persist in the near future.