Taiwan has bought 20,000 tonnes of corn from China for delivery before the Chinese New Year holiday in late January, traders said on Tuesday, after the Taiwan government temporarily lifted a decades-old import ban.
The Federation of Swine Co-operatives, which represents the majority of hog farmers in Taiwan, was the buyer and the deal was sealed in mid-December at US $155.5 per tonne based on cost and freight (C&F).
Traders had said in early December that a group of breeders were offering a quote of around $160 C&F per tonne for 20,000 tonnes of corn.
Traders were not sure whether Taiwan would buy more corn from China and had no further details.
Taiwan and China have been bitter political rivals since 1949. In November, Taipei temporarily cancelled a ban on corn imports from China in a bid to lower domestic prices of feed.
Analysts have said interest in Chinese imports was not strong because China's corn is only slightly cheaper than that from the United States. China also does not have much corn to spare for exports amid tight supply at home, they said.
Industry sources also say the lifting of the ban is aimed at pressuring Taiwan feed makers to lower domestic prices, which Taiwan's livestock breeding associations say are being kept artificially high.
When Taiwan temporarily lifted the Chinese import ban in October 2002, the island imported about 52,000 tonnes of Chinese corn that year.
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