January 30, 2009
Asia Grain Outlook on Friday: Wheat buying could pick up as price falls
Asian wheat purchases were slow this week, but will likely pick up next week, with buyers taking advantage of a global supply glut.
The state-run Trading Corporation of Pakistan is holding two separate tenders to buy a total 400,000 metric tonnes of wheat, with Saturday being the last date to submit bids: It seeks 250,000 tonnes of U.S.-origin wheat in one tender and 150,000 tonnes optional-origin wheat in the other.
Japan's Ministry of Agriculture, which didn't hold a wheat import tender this week, could hold one next week.
Other countries, such as South Korea, are likely to buy feed wheat because of its price advantage over corn.
Wheat prices are falling globally as supply continues to outstrip demand.
Market Unmoved By India's Basmati Rice Decision
The decision by India's government last week to cut the minimum export price of basmati rice to US$1,100 a tonne from US$1,200/tonne and to scrap an INR8,500/tonne export tax didn't boost exports of the grain.
Anil Mittal, chairman and managing director of KRBL Ltd., a New Delhi-based basmati export firm, said the moves were misguided as the minimum export price is still higher than international buyers are willing to pay for basmati.
Pakistan, India's main competitor in the basmati rice market was selling most of its produce at US$900/tonne, he said.
Mittal said that the high minimum export price has led to a 30% drop in domestic basmati prices since November, which is hurting farmers.
In other rice news, the Philippines government has allowed private firms and farmers' associations to import a total 163,000 tonnes rice in 2009.
The import quota is much lower than the 2008 quota of 500,000 tonnes for the private sector.
In deal news this week, South Korea's Nonghyup Feed Inc. bought 110,000 metric tonnes of U.S. corn from Cargill at US$197.70/tonne, on a cost and freight basis. The corn will be delivered in April.
