Vietnam corn buying spree continues as US PNW price tempts

US corn continues to see strong buying interest from Vietnam with fresh cargoes bookings heard from the competitively-priced Pacific Northwest this week, market sources said Friday.

“I would say there have been a couple of panamax parcels closed this week for April delivery,” one trading source said, with values for April and May heard at $198-$200/mt CFR Vietnam.

That amounts to a $10-$12/mt discount versus Argentina loadings, according to the market source.

“Vietnam usually takes Argentine corn, but given the current values, buyers are taking the Pacific Northwest given the discount,” the source said.

Across the Asia region, spot buying is currently said to be quiet with many of the key markets for US corn said to be largely covered following some healthy export sales demand to the Asian powerhouses of South Korea and Japan.

Japan snapped up 91,100 mt in export sales and 101,100 mt of exports in the week ending January 25, according to the most recent export sales highlights from the USDA.

South Korea racked up 132,100 mt in export sales and 63,100 mt for exports in the same week.

Vietnam’s buying has shown the reach that US corn now has given its relatively low price.

The higher moisture content of US corn – typically 14.5% versus the 12.5% more usually associated with South American or Ukrainian corn – means that countries like Vietnam do not typically buy US corn.

“US corn now works to a lot of places,” one US-based trader said, “and we need it to move because we’ve got a lot of it. It is the cheapest feed out there.”