Mainland corn ice breaking Taiwan market

Introduction: a senior official of China Grain and oil import and Export Corporation (COFCO group) confirmed to our reporter on November 7 that COFCO has obtained the qualification of exporting corn to Taiwan, and will export nearly 12000 tons of corn to Taiwan for the first time at the end of November This is the first time for mainland companies to export corn to Taiwan in 50 years after Taiwan authorities temporarily lifted the ban on corn imports from the mainland Taiwan's "foreign trade bureau" said in a statement on November 5 that in order to ease the corn supply tension caused by the recent US port strike, Taiwan will temporarily lift the ban on corn import to the mainland by December 31 According to the head of COFCO, Taiwan has only two months to open its corn market to the mainland, and all contracts must be completed before December 31 Currently, only two companies in China, COFCO group and Jilin grain group, have the right to export corn, and only one company will be approved to export corn to Taiwan At present, COFCO has passed the contract After examination and approval, the first contract was signed with a feed chamber of Commerce in Taiwan through chinafood.com, with a total volume of 12000 tons The Taiwan feed chamber of commerce also confirmed to the media on November 7 that it had signed a 12000 ton corn contract with the mainland through chinafood.com, and disclosed that the price of the contract was US $125 per ton The ship's corn was scheduled to arrive in Kaohsiung City in southern Taiwan between November 30 and December 7 But Jilin grain group also told the media at the same time that Jilin grain has been approved for export Jilin grain is negotiating with Taiwan companies to sell 20000 tons of corn to Taiwan, and the price of corn is higher than 110 US dollars per ton They are negotiating to deliver the corn in mid November or late November A Beijing institutional analyst said that Taiwan's move in the short term is more symbolic impact on Taiwan's corn import mode, and the news itself encourages the market to play a greater role than the impact on actual exports Although the ice on Taiwan's corn imports from the mainland has melted, this does not mean that the mainland can export a large amount of corn to Taiwan, because the mainland and Taiwan have not reached an agreement on the three links Taiwan imports 4.5 million tons of corn annually, the vast majority of which are imported from the United States Although Taiwan allows importers to import corn from the mainland before the end of 2002, the price of corn in the mainland is now $10 cheaper than that in the United States, Taiwan's companies have shown a strong willingness to buy corn from the mainland.