January 8, 2004

Malaysia Imports 200,000 Tons US Corn

Malaysia will import about 200,000 tons of US corn for late January and February delivery following uncertainty over Chinese corn exports, traders said on Thursday.

Regional grain traders declined to give the exact prices but said the contracts were signed close to $160 a tonne C&F.

"For Malaysian buyers looking for bigger cargoes, U.S. corn supplies are the only option now," said one Singapore trader.

The news about U.S. corn purchases by Malaysia comes a day after regional traders said the Southeast Asian nation had bought about 75,000 tonnes of the grain from India, which is offering corn cargoes for the first time in many years.

Some traders said Malaysia, Southeast Asia's biggest corn importer, had bought about 10,000 tonnes of the grain from Myanmar and some small cargoes from Cambodia.

"Every possible origin is being considered," said one Kuala Lumpur-based trader.

Malaysia is so far China's second-biggest corn customer, after South Korea, taking more than 90 percent of its annual imports of about 2.4 million tonnes from the Asian supplier.

China is struggling to rein in domestic food prices amid declining grain stocks. The grain market is closely watching to see if China, the world's second-largest corn exporter, will continue its aggressive sales in 2004.

Although official figures are not yet out, China's corn exports are expected to exceed a record 15 million tonnes in 2003. Talks have also circulated in markets that China might have imported up to four cargoes of U.S. corn.