While rising freight costs and higher futures lifted prices of grain offered in Asia this week, the Philippines bought around 100,000 tonnes of Australian feed wheat for shipment in June and July.

 

Feed millers in the Philippines bought one cargo of Australian wheat at US$295 a tonne, cost and freight (C&F), for June arrival and paid US$275 a tonne for the second cargo which is scheduled to be shipped in July, traders said.

 

Most Asian grain buyers remained away from the market this week as freight costs spiked for bulk cargoes carrying grains from South America to Asia, pushing up corn and soymeal prices.

 

"Millers seem to be covered for nearby shipment because we hardly saw any deals being done after bulk freight rose," said an executive with an international trading company in Singapore.

 

"There is not much interest in old-crop US corn despite tight supplies and Chicago futures going up."

 

Taiwan Sugar Corp. rejected all offers and made no purchase in a tender to buy 23,000 tonnes of US-origin corn and 12,000 tonnes of US-origin soy which closed on Thursday (Apr 26), citing higher prices.

 

The rate for panamax vessels travelling via the transpacific route surged to a six-month high of US$12,357 per day this week from around US$10,000 last week on strong demand.

 

As a result, Argentine corn was being offered in Southeast Asia at around US$320-325 a tonne, C&F, for shipment in July, up from US$305-310 a tonne a week ago.

 

Traders said there was an 18-20 day waiting period for ships carrying grains from Brazil to Asia.

 

"If we have to load anything from Brazil we have to wait for 18-20 days, you can't get a spot vessel," said another Singapore trader.

 

A rally in Chicago Board of Trade underpinned cash values in Asia. Front-month soy had climbed 2.6% so far this week, on track for a fifth straight week of gains. Wheat is up 1.6%, snapping a three-week losing streak, while corn has gained 2.4% after declining for two consecutive weeks.

 

Taiwan's Corn Industry Procurement Association bought 60,000 tonnes of corn to be sourced from Brazil in a tender which closed on Monday. Price was said to be US$1.46 a bushel C&F above the Chicago Board of Trade July corn futures contract. The seller was said to be Cargill.

 

South Korea's Feed Leaders Committee, newly formed after splitting from the Korea Feed Association, bought 55,000 tonnes of soy meal via a tender, while passing on another tender for October arrival, traders said on Friday (Apr 27).

 

It bought 55,000 tonnes from Cargill at US$504.89 per tonne C&F for arrival by September 10 at the port of Incheon or Kunsan.

 

"This is quite cheap as prices offered were as high as US$540 a tonne," said one trader who participated in the tender. "Meal prices are going up because of a squeeze in South American supplies."

 

Soy meal was quoted around US$505-510 a tonne in Asia this week, up by about US$15 from a week ago.