Asian feed processors will use corn for wheat in the fourth quarter
According to traders on June 19, Asian feed processors will use corn instead of wheat in the fourth quarter of this year to reduce production costs, as corn from exporting countries will be harvested. However, the delay in the South American shipping schedule will restrict this transfer.
At present, the price of corn in the Black Sea is 23 US dollars / ton cheaper than East Asian feed wheat, prompting buyers to turn to corn.
Tokyo Continental Rice said that the black sea corn offer for the long-term delivery is the cheapest, but will only be available in September.
He said that most of the corn harvest in the United States will only begin in the fourth quarter, because the spring is delayed.
Traders say that Japan currently imports about 900,000 tons of feed corn per month, but as long as prices fall, imports may increase by about 100,000 tons. Japan is the world's largest importer of corn.
They said that Brazil's corn is about to be harvested, the US corn planting work has just been completed, and Ukrainian corn production has increased. These factors will push international corn production to a record high and suppress the price drop.
In the September shipment, the US feed corn price is still higher than wheat, the Japanese port CIF price is 315 US dollars, and the December shipping price is 293 US dollars. However, traders believe that corn prices will fall by then.
South American and Black Sea corn prices are lower than feed wheat.
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