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StarLink find may hit U.S. corn sales (Thursday, Jan. 2, 2003 -- CropChoice news) -- Angus Chuang, Reuters, 12/30/02:
TAIPEI - The United States may face an even tougher challenge
competing with Chinese corn in Asia next year after the discovery of
banned
StarLink biotech corn in one of
its cargoes to Japan last week, traders said on Monday.
Japan's Agriculture Ministry said on Friday that trace amounts of StarLink
had been detected in a U.S. corn shipment bound for Tokyo's food supply,
reviving memories of a previous StarLink controversy about two years ago
that had a prolonged impact on sales to some Asian buyers.
"This is more very bad news for U.S. corn, which has been very much
overtaken recently by the availability of Chinese corn. There will be more
of a high alert in Japan," said one regional trader in Singapore.
China, which is threatening U.S. dominance in some Asian markets, is
expected to maintain strong corn exports next year, helped by bumper
domestic harvests and the lingering Starlink problems faced by U.S.
exporters, industry officials said.
China is expected to export about 10 million tonnes of corn next year,
maintaining this year's levels, said an official from Jilin Grain Group,
one
of China's two authorised corn exporters.
StarLink has been approved in the United States for animal feed but not
for
human consumption due to concerns that it might cause allergic reactions.
But it is not even permitted for livestock
feed in Japan, the world's top corn importer.
"Japan is the world's most sensitive market for health issues. The
discovery
is definitely going to force Japanese buyers to think twice before buying
U.S. corn," said one trader with a foreign
grain trading house in Hong Kong.
"It's hard to say whether they will once again turn their back on U.S.
corn,
but short-term impacts are inevitable," the Hong Kong trader added.
The discovery of StarLink corn in taco shells sparked a nationwide food
recall in the United States in 2000, prompting Japanese and South Korean
importers to cut U.S. corn buying, and sending them scrambling to find
other
suppliers.
U.S. corn sales to top buyer Japan have only started to return to normal
this year, while South Korean food processors have continued to shun U.S.
supply for food use.
CBOT UNDER PRESSURE
While U.S. corn exports to East Asia, already lagging last year's pace due
to high prices, might suffer another setback from Starlink, traders said
Taiwanese buyers might actually benefit from a dip in the U.S. market.
Fears of a fresh backlash against U.S. corn weighed on Chicago Board of
Trade market on Friday with nearby March delivery closing 3 U.S. cents
lower
at $2.39 a bushel.
"Starlink is not an issue here. But the apparent impact is that CBOT
prices
might come down, which is good for Taiwan buyers," said one Taipei-based
trader.
An alternative source for some corn buyers might be China, but Taiwanese
importers can only purchase from China until the end of this year after a
trading window with the mainland was temporarily opened in October to
alleviate supply tightness.
But a Japanese source said he was worried that no other source could meet
Japan's massive U.S. corn import needs, totalling about 16 million tonnes
a
year for both animal feed and human consumption.
The United States is the dominant supplier to Japan, representing more
than
90 percent of its total corn imports.
Crops in South America will not be available until March or April next
year. | |
