Congestion at Australian ports showed some signs of easing this week, but several ships still faced weeks of delays that may force some wheat buyers to seek alternative origins. While South Korea's corn imports slowed after weeks of strong purchases, Japan bought more than 150,000 tonnes of wheat in two tenders.
Traders said some Australian wheat exporters were running nearly one month behind schedule in delivering cargoes to customers as shippers jostle for space at the country's ports, clogged with wheat following the best harvest in 3 years. One shipping schedule showed around 1.7 million tonnes of wheat, sorghum, barley and chickpeas were loading this week or due for loading early next month.
Eight ships were due to take 272,600 tonnes of wheat to Iran, which has emerged as a leading buyers of Australian wheat. Japan, Indonesia, Malaysia, Pakistan, Vietnam, Egypt, Saudi Arabia, Sudan and Italy were among the other destinations. "Traders have sold more than can be handled, we are hearing delays of three weeks to one month," said the head of grains business at an international trading house in Singapore.
"This is a big problem for the buyers, some of them are in dire straits as their mills might not run. They are looking to cover cargoes from Europe or anywhere else to keep mills running." Grain handler and marketer CBH Group said it was trying to speed up movement of grains to ports in western Australia, the country's top exporter of the grain, where ships have faced major delays.
"We're overtime to get all the ships out but it is not going to be an immediate solution," a CBH spokeswoman told Reuters. CBH has increased capacity which translates to nearly 1 million tonnes per month compared with up to 700,000 tonnes before the ramp-up.
JAPAN BUYS WHEAT, SOUTH KOREA SOYAMEAL
Japan, the world's fourth largest wheat importer, bought 117,000 tonnes of wheat from the United States, Canada and Australia for loading in April. It also awarded a separate tender for 37,860 tonnes of wheat and 25,000 tonnes of barley. Feed millers in neighbouring South Korea bought 55,000 tonnes of corn for arrival on June 20 at $195.24 a tonne.
Last week corn imports by South Korea totalled 385,000 tonnes. But the country purchased 330,000 tonnes of South American soyameal in private deals at prices between $370 and $390 a tonne including cost and freight. In Southeast Asia, the Philippines was active this week, buying 85,000 tonnes of corn from the United States and Thailand for delivery in March.
Manila is allowing private firms to import up to 200,000 tonnes of corn this year at a lower tariff to help stabilise domestic prices. Philippine production of corn is expected to drop 2.6 percent to 3.21 million tonnes in the first half this year, from the same period in 2008. Taiwan's Flour Mills Association sealed deals to buy 91,300 tonnes of various grades of US wheat at between $255.97 and $304.03 per tonne.
The country has also sealed deals to import 23,000 tonnes of US corn and 12,000 tonnes of US soyabeans. Soyabean crushers in China, the world's biggest buyer, are reducing imports on hopes that prices on the Chicago Board of Trade will fall further and before large orders begin to arrive in the next three months, according to an official survey.
And there were also fears that some Chinese buyers may cancel US soya imports, including cargoes that are already afloat, after a sharp fall in soyameal prices wiped out crushing margins. Traders said there was strong possibility of wheat exports from South Asia this year as India and Pakistan were poised to harvest bumper crops. They said India may sell up to 1 million tonnes of wheat, while Pakistan could export 2 million tonnes of flour.
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