Thursday November 9, 4:30 pm Eastern Time

U.S. corn sales to Japan down, StarLink blamed

By Bob Burgdorfer

CHICAGO, Nov 9 (Reuters) - Top customer Japan continues to buy U.S.
corn but concerns that the genetically modified StarLink variety could
slip into shipments appears to have that country buying less than in previous
years, analysts said.

``Usually they are in for a mid-200,000 to low 300,000 tonnes per week
this time of year,'' said Joe Victor, vice president of marketing for
the grain research firm Allendale Inc. ``StarLink must be an issue because they
are buying a little bit less.''

The U.S. Agriculture Department's weekly export report released on
Thursday showed Japan bought 164,700 tonnes of U.S. corn during the week 
ended Nov. 2.

StarLink, developed by European firm Aventis SA , has been approved for
feed use in the United States but not for food use because tests indicate 
it may trigger allergic reactions in humans. In Japan, StarLink is not 
allowed in either food or feed.

Calls for testing corn shipments arose early this fall after traces of
StarLink were found in food products both here and in Japan. U.S. grain 
companies have been testing corn exports for StarLink for several weeks 
and the USDA will begin to oversee such testing beginning about Nov. 15.

Japan bought nearly 16 million tonnes of the 1999 U.S. corn crop but
purchases so far this year are down from that pace. Thursday's USDA export 
report showed that during the current crop year, which began September 1, 
Japan has bought 5.083 million tonnes of corn versus 6.463 million a year ago.

``I just don't think that at the end of the year that it will reach its
maximum potential,'' said Shawn McCambridge, grain analyst with Prudential 
Securities, of Japan's buying U.S. corn.

Japan will likely increase purchases of corn from South America and
South Africa to offset a drop in purchases from the United States, 
analysts said.

``They can't totally stop buying because they still have demand in that
country,'' said McCambridge. ``The concern about StarLink remains and 
outside supplies will be secured.''