March 28, 2011

 

Indonesia raises imports of Indian corn

 

 

Indonesia has increased Indian corn imports after getting a major deal with New Delhi in the beginning of the week.

 

Sri Lanka and Nepal are also likely to place orders for Indian cargoes.

 

Traders said Indonesia, trying to secure supplies of some essential food products, has bought an additional 200,000 tonnes of Indian corn after striking a deal to buy 100,000 tonnes in its biggest import contracts with New Delhi in at least two years.

 

"Indonesia has stepped up imports from India as it finds Indian corn very competitive. We have to remember that US prices are going up, making Indian corn really attractive," said Amit Sachdev, India representative of the US Grains Council.

 

On Thursday, CBOT corn soared to a two-week high with spot May ended above US$7 a bushel for the first time since March 7.

 

CBOT corn has resumed its long-term uptrend and a bullish target at US$7.29 per bushel has been established, according to Wang Tao, who is a Reuters market analyst for commodities and energy technicals.

 

Sachdev said Indonesia would buy more corn from India due to favourable prices.

 

Traders say Indian corn is at around US$320 per tonne, including cost and freight against US$345 quoted for rival South American cargoes.

 

In addition, Bangladesh bought 500,000-600,000 tonnes of Indian corn,while Nepal and Sri Lanka are expected to import soon.

 

"Nepal, Bangladesh and Sri Lanka put together will buy more than 800,000 tonnes of corn from India," said a New Delhi-based trader.

 

India, a key supplier of corn to Southeast Asia, is likely to export 2.8 million tonnes in the year from October, sharply up from about 700,000 tonnes in 2009/10.

 

Indonesia and Malaysia continued to buy high-protein wheat from the US.

 

US wheat was quoted at US$450 per tonne against US$460-$470 for Australian wheat.

 

Benchmark Chicago wheat futures rallied on Thursday, with the contract gaining 3.6% to 7.39-1/2 a bushel due to concerns that this year's US crop will fail to boost global supplies to comfortable levels.

 

CBOT wheat will gain further to US$7.62-1/2 per bushel, as a powerful wave (3) has started, according to Tao.

 

Australia's prime wheat was being offered at US$380 a tonne, free on board, a gain of US$50 from last week. Australian standard wheat was quoted at US$370 a tonne.

 

US standard white wheat was at US$370 per tonne, dark northern spring wheat at US$455 and hard red winter at US$405.

 

On Thursday, Japan bought a total of 103,125 tonnes of food wheat from the US. The cargo is for May loading.

 

Japan buys about five million tonnes of foreign wheat a year for milling use, which accounts for about 90% of domestic consumption.