Japanese soyabean importers are seeking to buy August shipments this week, but the pace of buying is still slow given high prices in Brazilian crops and recent gains in freight rates.
Japanese buyers are considering buying soyabean from the United States or Brazil for August shipments, but buyers are expected to source most of their requirement from the United States, traders said.
Japanese soyabean crushers need 3.1 million tonnes of soyabeans for calendar 2006, meaning they have to buy about 258,000 tonnes each month. "Things are moving very slowly. It may take another week or two before buyers can make decisions," a Japanese trader said. "Buyers want to wait and the very last moment before clinching a deal. Recent rises in freight rates are also making the situation worse," he added.
Japanese crushers often buy more Brazilian soyabeans around this time of the year because of the high average protein and oil content of the crop, which is better suited to meeting the protein requirements of domestic feed makers.
But the highs price of Brazilian soyabeans this year, due partly to the strength of the real against the US dollar, has dampened Japanese demand. Buyers were also reluctant to buy quickly, as they want to avoid holding large inventories at a time when crushing volumes are falling, traders said.
Soyabeans are used in Japan mostly to produce soya oil, with smaller amounts used to make tofu, soya sauce and other food products. The meal produced from crushed soyabeans is usually used as livestock feed.
In the corn market, Japanese feed makers have covered about 60-70 percent of their corn needs of about three million tonnes for the July-September quarter. They are expected to complete covering requirements for the quarter by the end of the month.