Cheap Indian corn favored by Vietnamese feed buyers

Foreign media on March 13: Sources said that Vietnamese feed buyers continued to order Indian corn to meet spot demand in March, because Indian corn is about $25/ton cheaper than corn from other global origins.
According to market sources, the CFR price of Indian corn shipped by Panamax cargo ships in April/May is about 310 US dollars / ton to Vietnam, while the CFR price of South American or South African corn with similar shipping schedule is 336 US dollars / ton. Ton.
According to Vietnamese customs data, as of February 15, Vietnam has imported 1.17 million tons of corn this year, of which about 150,000 tons came from India. For comparison, Vietnam will import 872,000 tons of Indian corn in 2022.
Vietnamese buyers said they did not find any quality problems with Indian corn, and as long as Indian corn was much cheaper than South American corn, they would continue to buy. A feed buyer said the aflatoxin issue could be resolved by blending with South American corn as long as other specifications are up to par. Considering the current low pork price, blending Indian corn can reduce the cost of feed ingredients. Domestic pork prices have been under pressure since the Tet holiday, with live hog prices below VND50,000/kg ($2.11/kg). Traders say pork demand remains scarce and domestic prices are still falling.
U.S. corn for April and May shipments remains the most price-competitive in Asia ahead of Argentina's new crop, traders said, though rising premiums for shipments from the West have shifted demand back to the U.S. Gulf . Interest in U.S. corn in Vietnam remains low right now. Traders said that farmers feel that American yellow corn is not yellow enough to be used as poultry feed, and that American corn needs to be dried, which is difficult to handle in Vietnam's humid climate.
Vietnamese buyers have strong forward demand for corn and feed wheat. Since February, they have ordered Brazil's new crop corn for shipment in the second half of the year, and they have also ordered feed wheat for July and August shipments from Australia, Romania and Bulgaria. The quotation of feed wheat for shipment in the third quarter is about US$310/ton, the CFR quotation for July shipment is US$314/ton, and the quotation for August shipment is US$309/ton. This is lower than corn quotations, suppressing demand for corn in Vietnam. On March 7, the CIF quotation of feed corn to Southeast Asia was 335.25 US dollars / ton.
Logistical pressures also pose challenges in the short term. Buyers say the large imports of Indian corn will put pressure on the logistics system, along with the storage space needed for South American corn and storage space for blending. Another Vietnamese feed buyer said logistical challenges would limit spot demand, with warehouse space tight in the south and short supply along the northern coast as too many ships were unloading. About 500,000 tons of corn are stranded in local warehouses and not sold, which is usually not a big problem, but the current demand from feed mills has slowed down significantly.