With freight at $50 a tonne to Southeast Asia, the landed cost of Indian corn works out to around $300 a tonne. US corn is offered at $220 a tonne, but is more expensive given freight of $93, he added. Corn offers from India, after nearly two years when it sat out the market, could give a measure of relief to Asian buyers trying to cope with scanty supplies and record prices caused by surging demand for the grain for food and ethanol use. Corn on the Chicago Board of Trade extended gains on Friday to just below $5 a bushel for March, just off a record high hit earlier this month.
The US is by far the worlds biggest corn exporter, with its sales in the week to January 10 at a record above 2 million tonne, and the bulk of that headed to Asia. There will be more corn offers out of India. They are expecting to sell a total of about 1 million tonne before March, Sachdev added.