Asia's grain mills slow wheat buying

Asian flour mills slowed wheat purchases last week after strong buying, while Indonesia and Vietnam are seeking soymeal cargoes for August shipment as lower South American prices have generated buying interest.

Wheat buyers in Southeast Asia stayed on the sidelines after picking up some 150,000 tonnes earlier from Australia for July and August shipment as international prices slid, regional traders said.

Japan's farm ministry bought 151,000 tonnes of food wheat from the US, Canada and Australia through a regular tender. The wheat is for loading from July 11 to August 10.

Traders said Indonesia is likely to take up to 60,000 tonnes soymeal for August delivery and Vietnam, which mainly buys in containers, is expected to go for smaller quantity.

South American soymeal prices fell last week to around US$375-US$380 a tonne from US$390, which is likely to draw in buyers who have remained away from the market.

"It is not very clear why prices are falling but most traders are saying it's because of farmer selling, also sellers are desperate for new business," said one soymeal trader. "But now people are actively negotiating, we expect deals in the next one or two weeks."

Three South Korean feed manufacturing groups bought a combined 165,000 tonnes of feed wheat and 55,000 tonnes of soymeal via private talks with suppliers, traders said on Friday (Jun 11).

The Korea Feed Association bought 55,000 tonnes of feed wheat from Glencore on Wednesday (Jun 9) at US$197.39 per tonne, C&F, for arrival at the port of Incheon by November 10.