February 26, 2013
India wheat sees strong demand by Thai, Malaysian feed millers
As global grain prices weaken, Thai feed millers bought 40,000 tonnes of Indian wheat this week, while Malaysian importers are likely to be in the market for 60,000 tonnes of corn for shipment in April.
Indian wheat was sold to Thailand at US$315 a tonne, including cost and freight (C&F), down from US$325 a tonne paid by feed millers in the Philippines two weeks ago, traders said.
"Some trading companies are very aggressively selling Indian wheat," said one trader with an international trading company in Singapore. "They are selling below the market price because demand is slowing." Asian grain buyers slowed purchases this week, hoping for a further decline in global prices on expectations of bumper supplies from South America and the US.
Chicago Board of Trade wheat is on track for its biggest weekly decline since early January as a snowstorm in the US Plains brings relief to the drought-stricken winter crop.
Corn is heading for a third consecutive week of decline with hopes of ample supplies in Brazil from April and the US by September. The Philippines is likely to cover its feed wheat requirement for June in the coming weeks with traders estimating the demand at around 110,000 tonnes.
Malaysia, which mainly imports corn for feeding livestock, has yet to cover at least 60,000 tonnes of corn for April shipment. "Buyers in Malaysia are waiting and watching as no one wants to be caught long in a market like this," said one trader who supplies South American and Indian corn to a group of feed millers in Malaysia.
Taiwan's MFIG corn purchasing group has bought 60,000 tonnes of corn to be sourced from Argentina in a tender which closed on Thursday (Feb 21). Some 5,000 tonnes was purchased at the outright price of US$319.37 a tonne, C&F. The remaining 55,000 tonnes was purchased at US$1.335 C&F a bushel over the July Chicago corn contract.
Chinese importers have booked up to nine cargoes of US soy this week for shipment beginning next month, with port congestion in Brazil likely to delay shipments from South America's largest exporter.