April 11, 2007

 

Asia Grain Outlook on Wednesday: Corn, wheat may gain on US weather woes

 

 

Prices of imported corn and wheat in Asia may rise through the rest of this week, tracking the likely strength in Chicago Board of Trade futures.

 

U.S. farmers are concerned about freeze damage to the developing wheat crop in several parts of the country, with some analysts saying the damage may be substantial.

 

Since corn and wheat are interchangeable as feed ingredients, any rise in wheat prices increases corn demand and prices.

 

In Asia, corn buying may emerge from the Philippines this week, as the Philippine National Food Authority is seeking to import 200,000 metric tonnes of corn from Argentina in a tender likely to be concluded later Wednesday.

 

The imports, for arrival between June and July this year, are intended to fill a shortfall in local output.

 

In China, a senior official at a state-run grain trading firm told Dow Jones Newswires that the country's corn export scenario is unclear at the moment, and final export figures for 2007 will depend on both the trend in international prices and domestic corn output.

 

He said the Chinese government hasn't issued any new export quotas, nor has it indicated whether it will do so any time soon.

 

Earlier this month, the China National Grain and Oils Information Center, or CNGOIC, raised its 2007 forecast for corn acreage by 2.2% to 26.9 million hectares.

 

In wheat, Japan will continue to remain an active buyer this week, with the agriculture ministry seeking 145,000 tonnes total wheat from the U.S., Canada and Australia in a tender to be concluded Thursday.

 

Grain buying remains lukewarm from major Asian importers South Korea and Taiwan, as most feed and food producers are well-stocked with grains over the next few months. Traders are also waiting for some stability to return to CBOT futures.