May 7, 2007

 

Asia Grain Outlook on Monday: Prices seen range-bound on lack of leads

 

 

Prices of imported grains in Asia may remain range-bound in the week ahead, as grain futures may drift in a narrow range on the Chicago Board of Trade in the absence of major fundamental developments.

 

Trading in Asia was quiet last week as no major tenders were reported from grain buyers in Japan, South Korea or Taiwan.

 

Well-stocked buyers in Asia aren't in any hurry to fill up their farther months' needs.

 

This week, there may be some import activity in Japan, where the Ministry of Agriculture will likely resume its weekly wheat purchase program from Tuesday, after a two-week break.

 

In addition, India's state-run State Trading Corporation, or STC, extended its deadline for receiving bids for a tender to import up to 1.0 million tonnes of wheat, to enable wider participation among suppliers and greater price competitiveness.

 

"Bids will now be received until around May 21 and offers should be valid till around May 30," a senior government official said.

 

Instead of May-July, India now plans to seek wheat for shipment between June and Aug. 15 to coincide with harvesting in several countries in Europe, he added.

 

Separately, the Pakistani government has approved the export of 500,000 tonnes of wheat to India, the Indo Asia News Service said last week.

 

"It (the export approval) was being done in the hope of making inroads into the lucrative Indian market," Pakistan's Food and Agriculture Secretary Ismail Qureshi said.

 

"The decision was taken especially in view of the tender floated by the State Trading Corporation (of India). The export will be undertaken by the private sector by sea and land route (the railways)," he added.