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Doane: Starlink-free premium?
Korea Moves Against Starlink (7 November - Cropchoice News) -- Regulators in South Korea, America's second largest corn customer, are waking up to the Starlink scandal that has so preoccupied their neighbors in Japan. This week Korean officials faxed the country's main corn importer group, the Korea Corn Processing Industry Association, and asked them not import Starlink.
In addition, according to Reuters, Korean officials want to know if any corn shipments already on their way are contaminated. Corn importers say they have relayed the message to their suppliers.
Much of the Starlink attention in Asia has focused on Japan, the number one buyer of US corn. Japan gobbles up over 16 million tons of corn every year. But Korea, plus Taiwan and other Pacific rim importers, together import about as much corn as Japan. This year, Koreans will buy over 8 million tons on international markets, the equivalent of about 17% of US exports.
It is unclear what sanctions Korean officials would take against any Starlink that is imported; but if Korea and other Asian corn importers adopt a stance similar to Japan's, it could create even more problems disposing of Starlink corn.
While concluding that USDA's new system for Starlink testing will not significantly disrupt exports, Doane, the St. Louis-based ag marketing and news firm, suggested in its market commentary yesterday that Starlink-free premiums may develop in corn markets.
Source: USDA, Reuters, Doane |
