Thai feed millers bought around 150,000 tonnes of South American soymeal for shipment early next year, while Malaysia is looking to buy corn cargoes for September and October arrival. Asian wheat buyers held back purchases as they waited for a further drop in prices, traders said. CBOT wheat was on track for a third straight weekly drop, dragged down by economic worries and bearish fundamentals.
Thai feed makers purchased 150,000 tonnes of soymeal at a premium of $38 to the December Chicago Board of Trade price, largely for shipment in the first quarter of 2012. "They are trying to cover in advance as the price was attractive," said one Singapore trader.
Thai millers, who have stepped up purchases of feed grains, bought 120,000 tonnes of soymeal from Brazil a few weeks ago from an international trading company at a premium of around $50 to the December contract. Malaysia is still open for around 60,000 tonnes of corn for September shipment and some 120,000 tonnes of October delivery.
"They have been looking to take cargoes, they are still not fully covered for September," said a feed grain trader in Singapore. "They might delay purchases slightly as prices are very volatile." US corn and wheat lost more ground on Friday, while soybeans slid to a one-month low, falling more than 1 percent amid a broad based sell-off in Asian markets on concerns over a global economic slowdown.
Front-month CBOT corn has lost 3.8 percent in three sessions, the biggest 3-day fall since mid-July, but is on course for a 2.7 percent gain this week, after two straight weekly losses. Wheat has lost 3.7 percent over three sessions, the most since early July. In the physical market, US soft white wheat was quoted around $320 a tonne, including cost and freight, while hard red winter wheat was being offered around $370 a tonne - down about $5 to $10 from last week. US spring wheat was offered near $435 a tonne.
"Buyers are not very well covered but they are staying away from the market as no one wants to take position in a falling market," said one trader who sells US and Australian grains into Southeast Asia. "They will wait for prices to come down before signing any deals."
Australia is offering new-crop Australian prime wheat for November shipment at around $340 a tonne, C&F, into Southeast Asia but buyers are unwilling to pay that price. "Buyers are quoting at least $20 below our price, it is not possible to strike a deal at this level," said one Melbourne-based trader. Wheat exports from Australia will suffer as cheaper cargoes from the Black Sea region eat into the nation's key market share in Asia, while a stronger domestic currency makes overseas sales uncompetitive. Japan's farm ministry on Thursday bought 103,342 tonnes of milling wheat from the United States in a tender. It took 37,580 tonnes of US western white, 32,028 tonnes of hard red winter and 33,734 tonnes of dark northern spring.
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