Cheap RI corn hurts Malaysia's grains trade<\/p>\n
KUALA LUMPUR (Reuters): Trading of imported feed grains in
\nMalaysia was lifeless yesterday as livestock farmers limited
\ntheir buying to absolute essentials due to tight liquidity,
\nindustry sources said.<\/p>\n
The market was further hurt by cheap Indonesian corn, which
\ncontinued to arrive in unknown quantities on barges run by barter
\ntraders.<\/p>\n
Corn is the most widely consumed imported feed grain in
\nMalaysia.<\/p>\n
"The arrival of maize from Indonesia is almost as difficult to
\nestimate as the arrival of illegal immigrants on our shores,"
\nsaid the sales manager for grains at a local flour mill.<\/p>\n
Trade sources said the stockpile of Chinese and Argentine corn
\nat Malaysia's central Port Klang had grown to almost 100,000
\ntons this week, from an estimated 80,000 a week ago.<\/p>\n
"It's a known fact that livestock farmers are buying feed from
\nhand-to-mouth now because of the tight cash situation," said a
\ntrader. "But we're not entirely sure whether the higher stocks
\nare because of this or because they're buying Indonesian corn."<\/p>\n
Maize from Indonesia could be obtained in Malaysia between 300
\nand 400 ringgit ($79 and $106) a ton, grains traders in the
\ncapital said.<\/p>\n
They said this was a huge discount compared with the 500
\nringgit a ton C and F for Chinese maize out of Port Klang.
\nArgentine corn out of the same port was priced at 510 ringgit a
\nton C and F.<\/p>\n
Traders said it was not possible to reduce rates of corn from
\nother origins to compete with Indonesian maize.<\/p>\n
"We're fighting with barter traders who will give as much
\ndiscount as possible to undercut the real market," said one
\ntrader. "If we put our prices at 300 ringgit, they'll sell at
\n250."<\/p>\n
The traders said although Indonesian maize was inferior in
\nquality to Chinese and Indonesian corn, pricing was what mattered
\nto farmers now.<\/p>\n
"Anyway, the pigs and chickens aren't complaining that the
\nfood is bad, so as long as there is adequate feed, the farmers
\nare happy," said another trader.<\/p>\n
Indonesian corn started arriving on Malaysian shores two weeks
\nago after Jakarta said it will export most of its maize this year
\ndue to tumbling meat consumption and livestock production.<\/p>\n
Indonesia, which expects to produce about 8.3 million tons of
\ncorn this year, said markets for the exports included Malaysia
\nand Thailand.<\/p>\n
Sales of imported feed grains in Malaysia languished after a
\nsharp fall in the value of the ringgit made the staple more
\nexpensive for chicken and other livestock breeders since July
\nlast year.<\/p>\n
The ringgit is currently at about 3.78 to a dollar, down 33
\npercent from its 2.52 level last July.<\/p>",
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