Asian corn markets face headwinds in 2021 from high feed costs, diverted demand
Asian feed buyers are facing heightened feed costs in 2021, resulting in a slower uptake of corn amid lower production, while grappling with poor demand brought on by animal disease and consumer demand not returning to pre-COVID levels despite governments gradually relaxing restrictions.
Corn prices on a CFR Northeast Asia basis are currently trading at their highest levels since S&P Global Platts began assessing the market in August 2016, supported not only by a buoyant futures market but also high global freight rates.
Pent-up demand for commodities from grains to coal powered the dry bulk shipping market in the first quarter, then tight spot tonnage on the US Gulf Coast and the east coast of South America and a severe cold snap in early February pressured freight prices even higher on long duration front-haul routes out of the key grain-loading areas.
South Korea's FLC buys corn privately at $296.79 for July arrival
agricensus.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from agricensus.com Daily Mail and Mail on Sunday newspapers.
CBOT Trends - Soy up 4-7 cents, wheat up 3-5 cents, corn up 2-4 cents
agriculture.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from agriculture.com Daily Mail and Mail on Sunday newspapers.
CFR Northeast Asia corn prices for cargoes arriving between April and May, has surged to a near 2 1/2-month high of $268.25/mt on Jan. 7, or up 3.2% from the monthly average of $260.25/mt in December, Platts data showed, propelled by the rally in CBOT corn futures.
In the first four days of the new year, Asian corn prices have outperformed last year’s uptrend, extending a climb which began in May 2020. The Asian corn marker had reached its 2020 peak of $263.25/mt on Oct. 27.
The persistent uptrend is due to many factors, but least of all demand.
The futures rally has kept South Korean buyers mum on their private and tender purchases in the past few weeks. The last time feedmillers in South Korea procured a corn cargo was on Dec. 9 when the Feed Leaders Committee booked 65,000 mt from Louis Dreyfus Co. at $235.95/mt CFR for July delivery. The cargo origins were optional first-half June from US PNW or May shipment from South America. Based on the Jan. 6 close of the July CBOT futu