Japan and South Korea seek US soyabeans

Japanese and South Korean grain importers are likely to seek US soyabeans, which seasonally dominate the global soyabean export market from September to January, traders said on Monday.
One trader estimated that Japanese buyers had purchased about half their needs for October shipment.
Japan, which relies on imports for the bulk of its soyabean demand, is expected to buy about 4.1 million tonnes of the oilseed from overseas for the 2006 calendar year, down about 1.2- percent from a year, the Agriculture Ministry estimated in March.
Some 70 percent or more of Japan's soyabean demand typically come from oilseed crushers, who are trying to reduce soyabean crushing volumes to avoid an oversupply of soya oil.
Buyers were closely tracking US soyabean premiums, which remain high partly due to strong freight rates.
The trader said the premium for October shipment to Japan might have climbed to as high as 220-230 cents on a cost and freight basis over the November contract on the Chicago Board of Trade.
This is up sharply from 190 cents in August. Japanese grain traders said they expect freight rates to remain strong, as there seems little reason to expect a decline.
"There is a psychological aspect, and at times like these ship owners become very bullish," the soyabean trader said.
The trader estimated spot charter rates for modern Panama tonnage's on the benchmark US Gulf to Japan route at around $55 per tonne, steady from a week ago and up about $2 from two weeks.
South Korea's CJ Corp is also likely to seek US soyabeans after it bought 55,000 tonnes of Brazilian soyabean last week. South Korea's state-run Agro-Fisheries Trade Corp will close a tender for 25,000 tonnes of US No 1 soyabean on September 5. Corn buyers in Japan were continuing to cover their requirements for October-December, with some traders estimating that more than half the buying was completed for the period.
In South Korea, corn buyers are expected to stay on the sidelines this week after covering large volumes for November arrival over the past few weeks. South Korean buyers have bought a total 745,000 tonnes of corn so far in August, 250,000 tonnes of, which are likely to be Chinese.
China suspended corn export quotas in March due to higher domestic corn prices. Traders and industry officials said the volume would be limited, as Beijing was no longer willing to provide subsidies, although China had resumed exports ahead of a record harvest expected in September.