Turkey’s TMO cancels corn buy as price, import duty forces rethink

Turkey’s grain buying agency TMO has cancelled a buy tender for up to 149,000 mt of corn citing high prices, market sources said Tuesday.

The move comes as Turkey wrestles with rising food prices, with some anticipating the cancellation of this tender may bring further impetus to a campaign to cut the country’s 25% import duty.

Good demand and weather worries have seen corn prices moving higher since the end of January, while a lack of Russian corn has tightened the market and seen offers ranging between $220 and $235.75/mt, according to a market source.

The tender is often met by Russian corn, which typically moves on vessels of up to 12,000 mt - a size better suited to Turkey’s usual import requirements.

“It’s impossible… the corn is not available… [there was] just a very limited number of participants in this tender, with very high prices,” a second market source said, expressing the view that the Turkish government “will lower or maybe cancel the import tariff.”

Russian corn prices were heard bid in the market at $202/mt for March/April loading Tuesday, with the Agricensus Black Sea to Sea of Marmara freight rate assessed at $35/mt for a 5,000 mt coaster.

The tender is likely to be reissued.