Australia has sold some 100,000 tonnes of wheat to buyers in Southeast Asia since the last week as a clearer picture of the crop emerged, while Malaysia is negotiating with traders to buy 60,000 tonnes of corn. Australian wheat sales climbed as Malaysia, Indonesia and Vietnam snapped up cargoes of mainly Australia prime wheat (APW) for December and January shipment at around $225-$235 a tonne, including cost and freight.
"A lot of deals have taken place last week and this week, around 100,000 tonnes have been traded as everyone is active," said a leading Singapore-based grains trader. "Business is picking up now that buyers have a much better idea about the Australian crop." September rains across Australia look to have ensured the wheat crop will meet forecasts for about 22 million tonnes, the biggest in four years, even though more rains are needed in New South Wales and southern Queensland.
The Philippines bought around 45,000 US spring and white wheat, although sales of US and Black Sea wheat were slow as Australia dominated the Asian wheat market with a bumper crop, traders said. US spring wheat to the Philippines was traded at around $300 a tonne, while white wheat was sold around $215 a tonne C&F.
"US wheat has its problems, premiums for spring wheat are very high," said another trader who sells US and Australian wheat into Asia. "Soft white wheat is cheap at around $215-$220 C&F, but there is not much demand for that variety at the moment." South Korea, which regularly imports US wheat, bought 19,500 tonnes of US wheat for December-January arrival from Cargill this week.
The country also took 45,000 tonnes of US corn from Cargill for shipment in December or January at $211.45 per tonne C&F. Malaysia, which bought at least two cargoes, or around 120,000 tonnes of Brazilian corn last month, was talking to traders to strike a deal to purchase 60,000 tonnes of corn for delivery in December, traders said. Taiwan, which has been actively bought wheat and soybeans in recent weeks, will tender to buy a cargo of corn totalling between 56,000 and 60,000 tonnes from the US or Brazil.
China was surprised in the market this week as the country's top feed mill, the New Hope Group, said it has purchased several thousand tonnes of Thai corn and are in market to buy more if the prices are attractive. But traders were sceptical about China's corn purchases from Thailand on quality issues. "China bought some corn from Thailand but we are not too optimistic about more sales," said one corn trader. "Thais have a lot poor quality corn lying around."