RI buyers may rush into corn markets<\/p>\n
SINGAPORE (Reuter): Malaysian and Indonesian buyers will
\nprobably jump into the market after the overnight release of a
\nbullish U.S. Department of Agriculture (USDA) report which sent
\ncorn futures prices soaring, dealers said on Wednesday.<\/p>\n
The USDA estimated on Tuesday that U.S. 1997 corn production
\nwould be around 9.276 billion bushels, sharply below its forecast
\nof 9.7 billion in July.<\/p>\n
The September corn futures contract on the Chicago Board of
\nTrade (CBOT) closed the 12-cent limit up, ending at US$2.61-3\/4 a
\nbushel. December was also up 12 cents at $2.65-1\/4 a bushel.<\/p>\n
\"I was very surprised by the numbers. It's already spooked
\nbuyers here,\" a dealer for a U.S. commodity house told Reuters.<\/p>\n
\"Everybody was surprised. I don't think people can hold back
\non buying too long. We're a long way from the next crop report
\nand we're coming into September when they have to make decisions
\non their last quarter needs,\" anther dealer said.<\/p>\n
Prices of U.S. corn coming into Southeast Asia rose sharply
\nand were seen by the trade at around $145-$150 a ton C&F on a
\nPanamax for October-December shipment against a quote last week
\nof $138-$142 a ton C&F.<\/p>\n
One analyst was a bit more cautious about buyers chasing corn
\nsupplies, saying they would probably come in if prices dipped.<\/p>\n
\"I don't think consumers are going to run and go crazy. I
\nwould be surprised to see people chasing corn,\" he said.
\nBut most of the trade believes otherwise.<\/p>\n
\"This thing will scare people. It will definitely spook the
\nbuyers,\" one said.<\/p>\n
Traders said Indonesia, which recently bought around 150,000
\ntons of corn mostly from China for September delivery, may need
\nto buy another 250,000 tons because of a drought which appears to
\nhave blighted the crop on Java.<\/p>\n
The crop has taken a pounding from dry conditions believed
\nprecipitated by the El Nino weather phenomenon.<\/p>\n
\"The Indonesians are already looking at new crop corn. If they
\nstart buying, that would be the number they're looking at --
\n200,000 to 250,000 tons,\" one dealer said.<\/p>\n
Malaysian feedmills will also be looking to pick up an
\nestimated 100,000 tons of corn for September-November delivery
\nand a further 150,000 tons for December.<\/p>\n
\"The 100,000 tons for September to November is the minimum the
\nMalaysians will need. I think it will be more than that,\" a
\ndealer said.<\/p>\n
\"The Malaysians are not going to be happy about this. They
\nshould be buying soon,\" a trader added.<\/p>\n
Thailand, on the other hand, is believed to be close to
\nsecuring most of the 150,000 tons of duty-free corn the
\ngovernment has allowed into the country.<\/p>\n
\"Their corn harvest is coming in so they will not probably
\nneed any new shipments immediately,\" one trader said.<\/p>\n
One grains analyst said buyers in Malaysia and Indonesia would
\ntry to get Chinese corn, although supplies from there are seen
\ndrying up towards the end of the year.<\/p>\n
\"For November-December, they will have to look at U.S. corn,\"
\na dealer said. A drought in China would also curb its corn
\nexports going into next year, he added.<\/p>\n
In the oilseeds business, bearish USDA numbers and
\nexpectations of a bumper soybean harvest in the U.S. drove buyers
\nto the sidelines.<\/p>\n
The USDA forecast a record soybean crop of 2.744 billion
\nbushels, up from trade expectations of 2.607-2.731 billion.<\/p>\n
\"I'm pretty comfortable with the bean number. The rain is
\nthere, the plants are fine. I think it's (the soybean crop) going
\nto be bigger,\" a dealer said.<\/p>\n
\"The buyers will say the USDA figures is bearish and ask for
\nreally low prices,\" another trader said. \"They can sit back and
\nwait for prices to come closer to their level.\"<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-buyers-may-rush-into-corn-markets-1447893297",
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"sponsor_url": "https:\/\/okusiassociates.com"
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