Agriculture, Grains
October 10, 2024
Turkey cuts corn import duty to 5% to stabilize supply amid surging prices
HIGHLIGHTS
Turkey cuts corn import duty to 5% until year-end
Turkish traders show increased buying interest
Turkey’s corn importers will pay a lower duty of 5% on the next 1 million t of the feed grain that enters the country, the government stated Oct. 10 in its Official Gazette, relaxing the standard 130% rate until the end of the year. The quotas will be allocated between feed mills and starch/glucose producers. Previously, the Government have temporarily reduced the import duty to zero in September 2021. Market sources said the duty would return to 130% after Dec. 31, once the agreed volume is reached.
Recently, corn prices in Turkey surged due to high demand from various sectors. Market sources indicated this decision was essential for stabilizing supply, as rising prices hindered imports. A Turkish trader remarked, “We are importing corn generally, but now, after these prices, we stopped.”
Following the announcement, Ukrainian traders noted increased interest from Turkish buyers. Spot delivery interest emerged early in the day, with buyers offering $240-$245/mt for coaster corn, while sellers sought $246-$250. Turkey has become a key market for Ukrainian corn, with offers at $239/mt for October-November deliveries on a CIF basis last week. However, the duty reduction may compel buyers to lower their bids, pressuring sellers to remain competitive and potentially resulting in price drops in the Ukrainian market.
A slight price reduction was observed, with buyers lowering bids and sellers adjusting offers. Competitive prices for CIF Marmara handy corn were reported at $240/mt for November delivery. Platts assessed Ukrainian corn for FOB POC at $218/mt on Oct. 9.
The domestic market is stabilizing as local corn prices decline. A Turkish trader noted that domestic corn is becoming cheaper. Turkey anticipates the second crop of corn to hit the market by November, further increasing availability and driving prices down.
According to market participants, the reduction in import duties is expected to enhance trade flow to Turkey in the coming days, allowing buyers to capitalize on lower prices.