October 24, 2011


Vietnam buys corn, soymeal from India



Vietnam purchased Indian corn and soymeal cargoes this week, each amounting about 10,000 tonnes for shipment in November-December.


Australia sold feed wheat to millers in Southeast Asia, while South Korea bought 110,000 tonnes of feed wheat at US$261.99 a tonne, including cost and freight, optional origin which traders said was most likely to come from the Black Sea region, given the price at which the deal was signed.


"Vietnam's feed millers took a combination of Indian corn and soymeal, around 10,000 tonnes each," said one Singapore-based trader. "Indian soymeal is the cheapest origin right now for late November and December shipment."


Indian corn was sold to Vietnam below US$280 a tonne compared with South American corn being quoted in Asia close to US$310 a tonne. The soymeal cargo from India was traded between US$370 and US$380 a tonne, C&F, against US$400-410 being offered for Argentinean shipments.


Traders said Thailand was also buying Indian soymeal but in smaller volumes. "Thailand is covered for half of its requirement until June next year, so they are taking small cargoes, a couple of thousand tonnes a week in containers from India," he said.


Two South Korean animal feed production groups bought 110,000 tonnes of feed wheat for January arrival in a tender on Thursday (Oct 20) at US$261.99 a tonne C&F, with the origin being kept optional.


Buyers were the Major Feedmill Group (MFG) and members of the Korea Feed Association (KFA) in Busan.


"Neither Australia nor India can match this prices," said one executive with an international trading company in Singapore which sells US and Australian wheat into Asia.


"It will most likely be Black Sea origin."


Australia was selling feed wheat this week in containers to Southeast Asia at US$290 a tonne, C&F, while Indian wheat was being offered around US$270-275 a tonne.


In Asia's milling wheat market, Japan's farm ministry bought 102,652 tonnes from the US, Canada and Australia, in a tender, while most other Asian buyers remained on the sidelines amid volatile prices.


Japan bought 20,793 tonnes of US dark northern spring wheat, 52,499 tonnes of Canadian western red spring wheat and 29,360 tonnes of Australian standard white wheat.


Australian prime wheat this week was quoted around US$300-310 a tonne, C&F, Australian prime hard wheat at US$410 a tonne and Australian standard wheat at around US$280 a tonne, traders said.


This compares with US soft white wheat being offered around US$295 a tonne, C&F, to Southeast Asia and spring wheat near US$430 a tonne.


US corn and wheat futures rose 0.5% on Friday (Oct 21), gaining for a second straight day in cautious optimism ahead of a weekend meeting of EU leaders on the region's debt crisis.


CBOT corn is up more than 2% this week in its third week of gains and wheat has added 1.8%, its second straight week of gains.


Asian buyers are focussed on a weekend meeting of EU leaders on the region's debt crisis which will provide direction to the commodity markets next week.


USDA's weekly reports on harvest progress and export sales will be closely watched by the market, while attention is also turning to South America as the summer planting season kicks off in the southern hemisphere.


Brazil's soy planting have picked up over the grain belt in the past week, with producers sowing 10% of the expected soy area by October 14, up from 5% the week before and on par with last year this time, analysts Celeres said earlier this week.

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