Malaysia is likely to be in the market this week to buy at least two cargoes of corn for July and August shipment, while Asian wheat importers have slowed purchases following a spike in international prices. Traders said Malaysia, Southeast Asia's biggest corn importer, is covered until June and feed millers will buy two panamax vessels or around 120,000 tonnes.
"They will probably look at South American corn as Indian quality is a problem," said one Singapore-based grains trader. "Moreover they don't require prompt shipments, so they don't need to go to India." Malaysia buys about 3 million tonnes of corn a year, taking prompt cargoes from India and buying forward shipments from Latin America.
Traders said Indian corn was quoted around $195 a tonne, including cost and freight to Southeast Asia, compared with $210 a tonne being offered for the South American grain. "India is still cheaper, but people don't mind paying a bit extra for the quality," said another trader.
Taiwan is likely to tender for 60,000 tonnes of corn in the coming days, after the Kaohsiung division of Taiwan's Breakfast Soyabean Procurement Association sealed a tender to buy a total of 120,000 tonnes of Brazilian soyabeans from Bunge. The Philippines, which is expected to tender for one soyameal cargo next week, may also buy South American soyameal on higher prices and a lack of supplies from India.
"Indian soyameal season is coming to an end, it is also becoming expensive," the Singapore trader said. "Offers from India are around $500 a tonne C&F. South American meal is below $470." India's oilmeal exports slumped 64 percent in April from the same month a year ago to 231,817 tonnes, following a slide in demand from the global livestock industry, a leading trade body said on Wednesday.
Most Asian wheat buyers were on the sidelines after the benchmark Chicago Board of Trade (CBOT) prices rose nearly 6 percent to a 3-1/2 week high of 5.60-1/2 a bushel last week on a fresh inflow of managed money into commodities. "The wheat market is very quiet, buyers are quoting very low prices and not many deals have been done," said one trader who sells Australian and Black Sea wheat in Asia.
"They have covered for June and July shipments, so there is no rush to buy." Traders said Southeast Asian importers were offering to pay around $200 a tonne C&F for Black Sea wheat, which is quoted around $225 a tonne. Australian wheat is priced around $255 a tonne and bids were at $220 a tonne.