March 8, 2010

 

Indonesia buys wheat, Malaysia seeks South American corn

 

 

Indonesia and Malaysia bought Australian wheat for shipment in March and April this week and a group of Malaysian feed millers were in the market to strike a deal for 60,000 tonnes of South American corn.

 

Indonesia wheat millers bought 20,000 tonnes of Australian prime wheat and Australian prime hard wheat, while Malaysian processors booked some 25,000 tonnes, mostly in containers for prompt and nearby shipments as buyers are not keen to commit long-term purchases.

 

Australian prime hard wheat was traded between US$270 to US$275 a tonne, including cost and freight to Southeast Asia and Australia prime wheat was sold at US$260-US$265 a tonne. Dark northern spring wheat from the US was being offered at US$310 a tonne C&F, hard red winter wheat quoted close to US$265 a tonne and soft white wheat priced near US$235 a tonne. These prices of US wheat quoted by traders in Asia are for handymax vessels.

 

Traders said there were a few cargoes of feed wheat from the Black Sea region traded around US$220 and US$225 a tonne in containers.

 

The Asian feed grains business was also active, with Malaysian negotiating to buy 60,000 tonnes of South American corn for arrival in May and Taiwan taking US corn and soy.

 

Traders said there was not much activity in the Asian soymeal business after South American premiums rose following rains.

 

Argentine soymeal was quoted around US$360-US$370 a tonne C&F to Southeast Asia, up from US$350 a tonne last week.

 

South American soymeal premiums have gone up to around US$360 to US$370 because there are concerns that crop might get delayed after rains, a Singapore-based trader said. There have not been any trades reported as buyers are waiting and watching, he added.

 

This year buyers attention has turned towards South American feed grains on higher production expected from the region, while traditional suppliers India and the US face quality problems.

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