Turkey’s TMO secures 120,000 mt of corn for late January delivery

Turkey’s TMO grain purchasing agency has secured 120,000 mt of corn for delivery through the second half of January after tendering for up to 156,000 mt, according to market sources.

The volume is split between four main ports: Derince, Izmir, Mersin and Iskenderun, with Derince taking the lion’s share.

According to market sources, Tiryaki and Glencore will deliver seven 12,000 mt parcels into Derince with prices at TRY 706/mt and TRY 708/mt ($184-185/mt).

Bunge will deliver one parcel into Izmir at TRY 718.50/mt ($188) and CHS will deliver into Mersin at TRY 720/mt ($188.50/mt).

Iskenderun will take one 12,000 mt cargo from Erser, with the cost said to be TRY 738/mt ($193.25/mt).

Market sources said the volumes were likely to come mostly from Russia, with some of the restrictions that had hit smaller cargo sizes now easing as freight levels soften.

Russia’s huge wheat crop has had a knock on effect in the Black Sea and the Azov Sea, as logistics prioritised the loading of larger Panamax sized vessels to bulk move the wheat volumes.

That saw freight rates firm dramatically, and edge out smaller cargo sizes on wheat, corn and barley.

“I don’t think the corn will come from Ukraine as we have something around 400,000 mt for export now… freight rates were high at the end of November, but they’ve been decreasing because there are less grains offered on the freight market,” one trading source said.