Indonesia to begin substantial imports of corn 

Mills in Indonesia have signed deals to import some 120,000 tonnes of South American corn, the country's first large purchases of the feed grain this year, prompted by higher domestic prices.

Mills are likely to be in the market to buy more corn cargoes ahead of the harvest in July, two Singapore-based traders said on Wednesday (Apr 21).

"They have bought two panamax cargoes for May shipment," said one trader with an international trading company. "Corn prices in Indonesia have risen substantially and mills are seeking cheaper cargoes from the international market."

Indonesian mills signed deals at around US$235-US$240 a tonne, including cost and freight, for shipment in May, compared with domestic prices quoted between US$280 and US$290 a tonne. Indonesian corn imports are expected to rise to as much as 700,000 tonnes this year, or a jump of 75%, as local corn production is set to be lower due to dry weather, the head of the animal feed industry association said last month.

The State Statistics Bureau has forecast Indonesia's corn output will rise to 18.12 million tonnes this year, from 17.592 million last year. The nation is still suffering from the effects of the El Nino weather pattern, although the impact is milder than that of 2009.