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."