June 18, 2012

 

Vietnam buys Chinese soymeal, Malaysia targets corn

 

 

Malaysian buyers are in the market dealing prices to take around 100,000 tonnes of Chinese corn for September shipment, while Vietnam bought Chinese soymeal this week at competitive prices.

 

Feed millers in the Philippines bought 50,000 tonnes of Australian feed wheat at US$283 a tonne, including cost and freight (C&F), while India was also active, selling more corn to Vietnam and Indonesia at around US$255 a tonne.

 

China, which processes imported soy mainly for domestic consumption, has been selling soymeal in smaller cargoes to Vietnam in past few weeks because of attractive global prices, traders said.

 

"China has been active but volumes are small, we expect around 5,000-10,000 tonnes sold in the last few weeks in small vessels carrying up to 1,000 tonnes each," said one dealer with an international trading company in Singapore. "This trend is not going to last more than a month as China has its own demand to meet."

 

China sold soymeal at around US$530 a tonne C&F to Vietnam, compared with US$540 a tonne being offered for South American cargoes and US$550 a tonne for Indian shipments.

 

In the corn market, Malaysia is negotiating to buy some 100,000 tonnes for delivery in September, while taking smaller volumes in containers from India for prompt shipment.

 

"They have already booked 50,000 tonnes of September and now they are looking for at least 100,000 tonnes more," said another Singapore-based trader.

 

South American corn prices offered in Asia rose to around US$280 a tonne this week from about US$265-270 a tonne being offered last week, on tight supplies and higher prices in the futures market. US corn futures are up around 0.5% this week after climbing more than 8% last week, which is being reflected in Asian physical prices.

 

Still, India has been selling corn at competitive prices to Vietnam, Indonesia and Malaysia. In deals signed in past few weeks feed millers in Vietnam have booked some 50,000 tonnes of Indian corn at around US$248-255 a tonne, C&F.

 

The country is expected to sell up to 900,000 tonnes in the months ahead after exporting around 2.4 million tonnes this marketing year which started in October, according to estimates by Indian traders. South Korea's Major Feedmill Group (MFG) has bought 70,000 tonnes of corn from Marubeni Corp at US$255.5 per tonne in a private deal, traders said on Friday (June 15).

 

The Philippines bought 50,000 tonnes of Australian feed wheat US$283 a tonne, C&F, for arrival in August. "I think they are done with their purchases for August, now they should be looking at September," the second trader said.

 

In the wheat market, US soft white wheat is quoted around US$285 a tonne, including cost and freight, (C&F) compared with US$300 a tonne for Australian standard wheat. Australia's prime hard wheat is being offered around US$390 a tonne on a delivered basis against US$350 a tonne being quoted for US dark northern spring wheat.

 

South Korea's Daehan Flour Mills bought a total of 25,100 tonnes of the US milling wheat from Toepfer via a tender. In separate deal this week DongA One Corporation bought 23,800 tonnes of US milling wheat from Louis Dreyfus Commodities via a tender.