February 14, 2011

 

Thailand buys Australian prime wheat, Indian grain exports to slow

 

 

Thailand has bought 40,000 tonnes of Australian prime wheat this week for April shipment, whereas grain exports from India are seen to be sluggish, regional traders said on Friday (Feb 11).

 

Indian corn and soymeal exports are expected to slow after Vietnam rejected several cargoes over fumigation issues this week.

 

Australia prime wheat was traded to Vietnam at US$410 a tonne, including cost and freight (C&F) and there were not many other deals reported in the region as buyers were still negotiating cargoes.

 

"Malaysia and Indonesia have largely covered until April, so they are sniffing around for supplies for May onwards. Prices have risen in past few weeks, so buyers will wait for the market to come down slightly before putting more orders," said one trading manager with an international trading company.

 

Tightening global grain supplies amid droughts, floods and an unrelenting demand for feed, food and fuel have triggered a spike in grains prices, with US wheat and corn more than doubling from last summer's lows.

 

Japan farm ministry has bought a total of 164,574 tonnes of milling wheat from the US and Canada through a tender that closed on Thursday (Feb 10).

 

US dark northern spring wheat was quoted between US$480 and US$520 a tonne, depending on protein content, c&f in Asia and soft wheat was offered around US$380 a tonne this week, traders said. US hard red winter wheat was priced around US$420 a tonne.

 

Australia prime hard wheat is priced at US$400-$415 a tonne, traders said.

 

In Asia's feed grain business, India's exports of corn and soymeal are expected to suffer after one of its biggest buyers, Vietnam, rejected shipments over fumigation issues.

 

Buyers will not take the risk of purchasing Indian cargoes after Vietnam's rejection, despite the fact that they have been using Indian grains for months, said another Singapore-based trader. "Some of the demand will turn to South American supplies."

 

India is in talks with Vietnam to resolve a row after the Southeast Asian nation rejected corn and soymeal cargoes because of an infestation of Khapra beetles, India's trade minister said on Thursday (Feb 10).

 

South American crops will be in focus in Asia in the weeks ahead with harvest due to pick up next month and importers looking for soymeal and corn cargoes.

 

The new-crop soymeal from Argentina is being offered at US$480 a tonne, C&F, for shipment in May, compared with Indian meal being quoted around US$450 to US$455 a tonne.

 

Nonghyup Feed, the largest feedmaker in South Korea, battling the country's worst outbreak of foot-and-mouth disease, is seeking corn and feed wheat in its first tenders this year, traders said.

 

Feedmakers in South Korea, the world's No.3 corn buyer for feed and food, have been sidelined since the beginning of the year by rising global grain prices and falling demand for feed, with nearly a third of the country's pig population culled in three months to stem the spread of foot-and-mouth.