Southeast Asia seeks to buy more corn from India

Southeast Asian countries, particularly Indonesia, Vietnam and Malaysia, are looking to purchase more corn from India, with exporters receiving significant volume shipment requests through March. next year, according to traders.

Demand has increased after world corn prices hit 10-year highs seen in the middle of the year, but Indian exporters are competing fiercely with each other.

“There is a good movement of corn to Southeast Asia after the global price drop. But there is strong competition among Indian shippers resulting in tight margins, ”said Madan Prakash, president of the Agri Commodities Exporters Association (ACEA).

Deliveries so far

“There is good demand in Indonesia, Vietnam and Indonesia. We are receiving new orders which will be fulfilled over the next three months, ”said Mukesh Singh, director of MuBala Agro.

After March, countries in Southeast Asia will have their own maize crop to meet their needs.

According to data from the Processed Food and Agricultural Export Development Authority (APEDA), India exported 19.58 lakh tonnes (lt) of export of other grains – i.e. corn – valued at 3,836 crore from April to October against 12.71 lt valued at 2,046. crore in the period of one year ago.

APEDA data for the first half of the year shows that Vietnam is the biggest buyer of Indian maize, importing 6.05 lt, followed by Bangladesh which bought 5.90 lt. In the last fiscal year, corn exports reached a seven-year high of 28.79 lakh tonnes.

The US Department of Agriculture (USDA) in its “Grain: World Markets and Trade”, fixed Indian corn exports down in 2021-22 (July-June) at 25 lt against 37.5 lt in 2020 -21.

Vietnamese scouts for Indian corn; Bangladesh and Nepal buy good volumes

Retain products

Although he did not specify any reason, it could be because neighboring countries like Bangladesh might import this tax a little less. Dhaka imported 15.66 tons of lakh in the previous fiscal year and according to the trend in the first half of the year, its imports may be lower.

But Mumbai-based MuBala’s Singh said exporters are seeing a lot happen over the next three months and together with producers have started to hold back inventory. “We are holding back because we believe that prices will increase in the coming months. Right now we are getting corn at 15,000-15,500 yen per tonne and even if we get 500 yen more, that will be good, ”he said.

Currently, exporters like him source corn from Maharashtra. “We are getting corn at 17,250-17,500 yen a tonne ex-Nashik to ship from Mumbai,” ACEA’s Prakash said.

Kharif arrivals are good

“We source corn from Odisha and Karnataka in Bangladesh,” said Bimal Bengani, managing director of Kolkata-based Bengani Export Pvt India Ltd.

Currently, Indian exporters quote corn between $ 265 and $ 270 per tonne free on board. According to the International Grains Council (IGC), Brazil prices corn at $ 276, the United States at $ 267 and Argentina at $ 255 per tonne. By July of this year, corn prices had exceeded $ 300 and were even higher than wheat prices.

Kharif season corn has started to arrive and the quality is good, exporters said. While Maharashtra’s new crop is destined for exports to Southeast Asia, said Singh of MuBala for Bangladesh, April harvest stocks from Bihar have been sent.

He said exporters were making small deals with importers in Vietnam, Indonesia and Malaysia because it was a safe option. In addition, buyers were also at ease after last year’s bitter experience when some traders canceled their trades as prices rose.

“Last year some of our traders switched back to futures when prices went up. This shocked importers. So they’re a little cautious this year, ”Singh said.

Bangladesh offers hope as corn exports to Southeast Asia slow

Optimism despite bearish signals

The optimistic outlook for exporters for corn shipments is despite bearish signals from the Food and Trade Organization as well as the IGC.

According to ING Think, the financial and economic analysis wing of Dutch multinational financial services firm ING, the closing stocks for the US and the world have moderately signaled a downtrend.

The FAO, in the Market Monitor report published by its Agricultural Market Information System, said maize production in 2021-2022 is expected to reach a new record of 1199.7 million tonnes (mt) against 1115 , 8 mt last season.

He said world trade is likely to decline by 187.2 t (190.6 t) and ending stocks are estimated at 292.8 t (285.7 t).

IGC has set maize production at 1212 mt (1,126 mt), trade at 177 mt (189 mt) and closing stocks at 287 mt (278 mt).

Top 5 Indian Corn Buyers *

* April-October 2021

Source: APEDA