Grains: Light seen at end of RI tunnel<\/p>\n
SINGAPORE (Reuters): Indonesia's commodity markets, disrupted
\nfor months by political and economic chaos, are cautiously
\noptimistic a day after the strife-torn country named a new
\npresident, traders said on Tuesday.<\/p>\n
As the world's fourth biggest population hopes for a return to
\nstability under President Megawati Soekarnoputri, and the rupiah
\ncurrency gains against the U.S. dollar, traders said Indonesian
\nbuyers were dipping their toes in the grain market.<\/p>\n
\"Encouraging signs for the markets are already visible. I am
\nsure business will get a boost,\" Ali Basry, director for
\nIndonesia of the American Soybean Association, told Reuters by
\ntelephone from Jakarta.<\/p>\n
The largest market for wheat in Southeast Asia and one of the
\nleading markets for commercial feed, Indonesia's commodity
\nmarkets have been hit by many negative factors in recent months.<\/p>\n
But traders said grain buyers were now making tentative
\ninquiries for relatively bigger volumes of wheat and soy, after
\nalmost three months of sluggish business.<\/p>\n
In addition to currency woes and high Chicago prices,
\nIndonesia earlier this year banned grain imports from South
\nAmerica due to foot-and-mouth fears. This left buyers with no
\noption but to buy high-priced U.S. grain.<\/p>\n
The poultry industry has also been hit by political violence.<\/p>\n
Megawati took over as Indonesia's president on Monday after
\nthe country's top assembly sacked her predecessor, Abdurrahman
\nWahid, for incompetence.<\/p>\n
The rupiah gained more than 10 percent, and was last traded at
\n9,800 per dollar, on hopes of a stable political scenario.<\/p>\n
\"We are pretty confident that business will return to its
\nnormal pace by September,\" said one Jakarta-based wheat trader.
\n\"Things will take time to pick up.\"<\/p>\n
At the start of the year, Indonesia was hoping its feed output
\nwould rise to about 5.10 million tons in 2001 from 4.60 last year
\nbut the slowdown in the past few months prompted trade officials
\nto revise down the figure to zero growth.<\/p>\n
Regional grain traders said Indonesian soymeal buyers were
\nexpected to return to the market for soymeal for late August and
\nearly September shipments. Buyers were eying wheat cargoes for
\nOctober shipments.<\/p>\n
\"There was a bit of rally in Chicago overnight. But the
\nrelatively stronger rupiah will partially offset that,\" one
\ntrader said. \"We are expecting some buying interest.\"<\/p>\n
On Monday, Chicago Board of Trade soy product futures ended
\nhigher on short covering and support from higher CBOT soybean
\nprices. CBOT soymeal futures front months closed 90 cents to
\nUS$2.30 per ton higher, with August up $1.10 at $171.40.<\/p>\n
Some traders said they were hoping that the ban on South
\nAmerican grains would be lifted following a change in Indonesia's
\nleadership.<\/p>\n
Trade officials have urged the government to lift the ban,
\nsaying that they were losing out the opportunity of buying the
\ncheapest available grain.<\/p>",
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