East Asian importers will likely have a strong appetite for corn and soybeans this week, taking advantage of lower prices, before business slows for the Lunar New Year holiday in February, traders said. In South Korea, the Major Feedmill Group (MFG) is seeking 52,500 tonnes of optional-origin corn for arrival on June 5 at the port of Inchon at around $136 per tonne on a cost and freight basis if rose from the United States or South America.
It is also seeking 52,500 tonnes of optional-origin corn for arrival on April 30 at the port of Kunsan.
"Feed makers will likely continue to pay attention to corn offers until competitive offers around $136 per tonne C&F are exhausted," a Seoul trader said.
Nonghyup Feed Inc, another feed makers group, was seeking 105,000 tonnes of corn of optional origin for arrival on May 30 at Korean ports, traders said.
In the wheat markets, Korea Flour Mills Co Ltd would likely reissue a tender to buy 19,000 tonnes of US No 1 wheat after it passed on a tender early this month, traders said.
For March delivery to the port of Pusan, Dongah Flour Mills Co Ltd and CJ Corp were considering a joint tender to buy US No 1 wheat this week, traders added.
In Taiwan, importers would likely seek optional-origin corn and soybeans as they squeeze in their last tenders ahead of the Lunar New Year vacation in the second week of February.
The Great Wall Feed Group was set to announce a tender for between 50,000 to 60,000 tonnes of either US or Argentine corn following a meeting on Monday.
"The price of the Argentine corn bought last week was cheap, but we are waiting to see what's on offer from the US and also to see what happens with freight rates," a group official said.
The Kaohsiung division of the Breakfast Soybean Procurement Association would also likely hold a tender for soy sometime this week, officials have said, but no further details were available.
In Japan, business for new crop Brazilian soybeans has started, with the first import deal done for about 45,000 tonnes for March shipment, traders said.
"The pace of buying was slower than usual, due to weaker demand from crushers," said a trader at a Japanese trading company, referring to cutbacks in soybean crushing by Japanese companies amid a high level of vegetable oil stocks at home.
However, he added, Japanese demand for Brazilian soy could pick up if they become cheaper than US beans, as Japanese crushers are unhappy with the protein content of some US beans.
Currently, premiums for US and Brazilian soybeans for March shipment to Japan are at similar levels, traders said.
Japanese feed makers are expected to seek US corn for April-June shipment this week, with easier freight rates putting downward pressure on premiums, traders said.
One trader estimated Japanese feed makers had so far covered 15-20 percent of their total corn needs for second-quarter shipments, or roughly 450,000-600,000 tonnes.
"After striking the first import deal for April-June about two weeks ago, buyers have been moving forward gradually," the trader said, adding that buying emerged when premiums dipped.