Thailand bought around 45,000 tonnes of US wheat for May/June shipment, while Indonesia is looking to import some 100,000 tonnes of corn from the United States and South America. Thailand purchased dark northern spring at around $315 a tonne, including cost and freight (C&F), hard red winter at close to $250 a tonne and western white wheat at $235 a tonne, regional traders said.
"There was some interest in US wheat as prices are now steady after last week's drop," said one trader who sells US and Australian wheat into the Asian market. The benchmark Chicago Board of Trade wheat prices rose 3.5 percent this week after sliding more than 2 percent last week to a six-month low on ample supplies of the grain.
Traders said there was poor demand for Australian wheat and only small quantities were traded in containers. "Australia is very quiet. We haven't heard any bulk deals for Australian wheat as most buyers are covered for the next two months," said one Singapore-based trader with a multi-national trading company. "No one wants to buy too much in forward when you have a situation of oversupply."
Mills in Malaysia, Indonesia, Vietnam and the Philippines are covered until June and negotiations for July delivery cargoes will start next week. On Thursday, Japan's farm ministry said it bought 157,000 tonnes of food wheat from the United States, Canada and Australia through a regular tender.
There was also talk among European traders that a South Korean buyer is in talks to purchase up to 300,000 tonnes of wheat from Kazakhstan. Any deal would be another indication that East European and Central Asian wheat is moving into new markets traditionally dominated by other origins including the US.
South Korea, which was actively snapping up corn cargoes, slowed purchases this week. But traders said some buyers are likely to hit the market next week. "Some cargoes may be sought next week as buyers who held back purchases this week due to rising freight costs will be back in the market," a Seoul-based grain trader said.
"Feed makers won't wait much as their competitor Major Feedmill Group bought September cargoes earlier this month and they don't want to pay much higher than MGF." South Korea bought only 47,000 tonnes of US No 2 or better yellow corn for August 30 arrival this week via tender, compared with more than 600,000 tonnes contracted by Korean food and feed makers including Major Feedmill Group in the past few weeks.
MFG bought 110,000 tonnes of US No 2 corn at $217.95 and $218.45 per tonne on a cost-and-freight basis each for September 10 and 20 arrivals. Traders said Indonesia was looking at buying some 100,000 tonnes of corn for June and July shipment. "They will probably take South American corn as US doesn't work out," said a Singapore-based grains trader. Argentine corn is quoted between $228-$230 a tonne C&F into Southeast Asia, while US corn is priced around $240 a tonne.