Many East Asian grain importers are unlikely to buy this week, despite a decline in benchmark Chicago Board of Trade (CBOT) futures last week that trimmed gains from a recent wave of buying by investment funds, traders said. While some Taiwan grain importers are mulling tenders for corn and wheat this week, none have been confirmed. "Prices softened a little, so we are considering a (corn) tender for shipment at the end of April," an executive from the Great Wall Feed Group in Taiwan said on Monday.
CBOT corn futures closed lower on Friday, tracking weakness in soyabeans, with May corn settling at $2.19-3/4 per bushel after hitting a 6-1/2 month peak last week following aggressive buying from managed funds over the past month.
An official with Taiwan's Members Feed Industry Group said the group would also discuss a possible corn tender this week. The Taiwan FlourMills Association was seen a tender, traders said, though group officials said it was not considering a tender.
But other grain traders in Seoul and Taipei said that the fall in Chicago grain futures last on Friday was not enough to encourage them to buy right away. Japanese markets, meanwhile, were closed on Monday for a national holiday.
"It was only a small dip. We may consider a tender if prices fall more sharply later this week," said a senior trader at Daehan Flour Mills Co Ltd, which needs to buy US No 1 wheat for May delivery.
Another senior trader at Dongah Flour Mills Co Ltd, which also needs to import US No 1 wheat for May delivery, said that it had no purchase plan due to current high prices.
An official with state-run Taiwan Sugar Corp said: "Prices are still so high, I don't think we'll be holding a tender." In the corn markets, almost all South Korean feed makers have covered their needs for panamax-sized cargoes by June arrival, and some even bought up to end-July arrival.
Traders said feed makers would take their time for the next purchases.
An official at Nonghyup Feed Inc, which bought 52,500 tonnes of Chinese corn at $141.50 per tonne on a cost-and-freight basis last on Wednesday for June 20 arrival, said the company would await better offers than the last deal for its next delivery.
Korean feed makers, who jointly bought 102,500 tonnes of Canadian feed wheat at $154.38 per tonne C&F last on Friday for May arrival, were also unlikely to make another purchase in the near future as the deal covered up to July consumption, traders said.
Feed wheat offers had no price competitiveness against corn as Korean feed makers usually opted for feed wheat if it cost less than corn, they added.