India has contracted to sell about 150,000 tonnes of corn for shipments over the next two months, traders said on Tuesday, capitalising on the absence of export offers from China.
Malaysia, Southeast Asia's biggest corn importer, Vietnam and Indonesia have all bought cargoes from India, which has already shipped out about 60,000 tonnes of corn, traders said.
It is for the first time in recent years that India has turned to corn exports following a firming up in international prices and due to lack of offers from China.
World corn prices have risen about 12 percent to $140 a tonne in the past two months, traders said. "It is a freak year for us with export prices being good," said a Bombay-based commodity analyst. Traders said India has not been a traditional exporter of corn as local prices used to be higher.
"Let us encash on the opportunity and move on," said Gagan Gulati, an exporter based in the western city of Ahmedabad whose firm sold about 8,000 tonnes of corn in recent weeks, mainly to Indonesia.
Traders in Singapore said on Monday that India had sold 15,000 tonnes of the grain to Iran for late January and February shipments.
No details on the price at which the deal was sealed were available.
Some regional grain traders said India had also sold about 5,000 tonnes of corn to Oman for nearby shipment.
Indian traders said it was difficult to quantify the total exports as most of the sales are done in small parcels, mainly through international trading houses.
Traders said the market for Indian corn, which started with a boom at $130 a tonne FOB (free on board), could last till the end of March by when South American corn will become available.
Traders said there was a breather in the market with some resistance from buyers at current levels of $140 a tonne FOB but sales should resume once prices ease a bit.
Some traders said India could export up to 300,000 tonnes of corn during the year but much would depend on Chinese exports.