March 5, 2012

About 25,000 tonnes of Australian prime wheat have been bought by Thaiflour mills this week, while grain processors from the Philippines passed on a tender to take 60,000 tonnes of feed wheat.

Thai millers bought wheat at US$305 a tonne, including cost and freight (C&F), for May shipment.

But buyers from the Philippines decided not to buy 60,000 tonnes of feed wheat. "They were offered US$295 C&F which is quite an attractive price for feed wheat at the moment but they decided not to go ahead with the purchase," a trader said.

Traders said Vietnam is in the market to buy 50,000 tonnes of feed wheat for May shipment but no deal has yet been signed.

Argentine corn is being offered around US$330 a tonne, C&F, in Asia, up from US$323 a tonne quoted last week following a 1.2% increase in benchmark US corn futures this week.

Soy is on track for a third straight week of gains, lifted by concerns over South American supplies, while wheat is up 3%. The soy market has received additional support from expectations of strong Chinese demand as processing margins improve in the world's top buyer of the oilseed.

China's National Grain and Oils Information Centre said soy crushers had increased output in recent weeks because of improved crushing margins, which should boost soy imports.

Indian corn was offered at US$310 a tonne, up from US$305 a tonne last week. Australian feed wheat was quoted around US$295 a tonne, C&F, in Asia against US$289 a tonne last week.