Corn prices in ASEAN level due to paper stocks

Corn prices in ASEAN level due to paper stocks

SINGAPORE (Reuter): Plentiful imports have recently kept domestic corn prices in Southeast Asia largely steady after weeks of successive price increases, traders said.

"Buyers are well covered both in physical and paper (corn) stocks," one Indonesian trader said. "In my case, I have enough stocks to last me until August without making fresh purchases."

Traders said Indonesian corn prices were Rp 640-650/kg in Jakarta this week, unchanged from a week ago. They said soymeal prices were around Rp 680-690/kg, up from Rp 660-680 last week.

The traders estimated that 300,000 tons of U.S. corn are currently being unloaded at the Jakarta and Surabaya ports.

Vietnamese operators were also said to be offering corn at US$205 a ton FOB, but the quality of their product was unclear.

One trader said buyers have been infuriated by sellers who keep hiking prices to get the best deals.

"Each time a person wants to buy at their quoted price, they keep raising the price," he said.

"Many players feel they have been played out by the sellers because they kept raising the price each time they (buyers) wanted to buy. Now many of the buyers are sidelined."

In Thailand, domestic maize (corn) prices paid by feed producers averaged 5.850 baht a kg this week, the same as last week, as imported supplies are offsetting a tight local situation, traders said.

Merchants are still holding back supplies and are waiting for higher prices, they added.

"This month and next month we have three shipments of imports so they will offset the tight local supplies," one trader said.

Soymeal prices slipped to 10.20-10.30 baht this week from 10.50 baht/kg last week as imports eased the supply situation and buyers held off their purchases as prices were judged too high, trader said.

"The price is too high and the imports led to lower prices," one trader said.

"Demand is still firm but the problem is that some people are holding off buying."

In Malaysia, traders said corn price were expected to firm in the local market next week despite a slight consolidation and dip this week due to adequate stocks.

"The trend will still be upwards as demand is expected to exceed supply," said an official at a feed mill.

Corn was quoted at between 580-590 ringgit a ton in bulk ex- factory/godown in the central region, industry sources said.

"A" grade wheat in bags was priced at around 970 ringgit a ton and low grade wheat in bags at around 650-700 ringgit, both ex-factory/godown central region.

Imported soymeal in bags is fetching around 770 ringgit, a ton ex-factory/godown central region, while local material in bags is around 780 ringgit.

Malaysian buyers were bullish in their outlook for wheat.

"Each time, we in the industry think the wheat price has hit the ceiling, it surprises us again," said a source at a flour mill. "There might be a consolidation in the longer term, but for now it still looks strong."