September 5, 2008

Indonesia has only bought around 50,000 tonnes of soymeal for the last quarter of 2008, less than a third of what it contracted to buy at this time last year, traders said at the sidelines of a grains seminar in Cambodia.

Importers are holding back in anticipation that prices will soften with India's soy harvest next month.

A dealer said Indonesia needs to book 500,000 tonnes of shipment for the fourth quarter and deals could start soon.

Last year, rising prices prompted more people to buy early to lock in prices. This year, buyers are waiting for Indian prices to be lowered, hence the smaller volume contracted, he said.

So far, India has contracted to sell around 200,000 tonnes of soymeal from the new crop mainly to Japan and South Korea, just 20 percent of around 1 million tonnes sold by this time of the year.

Indian soymeal is currently quoted at around US$425 to $430 per tonne free alongside ship (FAS) Kandla port on the country's western coast, similar to prices on the CBOT.

The country is expected to export a record 5.5 million tonnes of soymeal this year, as its soy crop is expected to rise from 10 million tonnes to 10.2 million tonnes.