Indonesia and Malaysia pick up Chinese corn

Indonesia and Malaysia pick up Chinese corn

SINGAPORE (Reuter): Indonesia and Malaysia have bought around 50,000 tons of Chinese corn in the last week, and possibly more, as the grains and oilseeds business picked up in the region, traders said yesterday.

The Indonesians bought around 20,000 tons of Chinese corn, while the Malaysians picked up 30,000 tons for shipment from April onwards, the dealers said.

Buyers from both countries were given a slight discount and paid about US$148-$150 a ton C&F compared with the prevailing quotes for Chinese corn coming into Southeast Asia of around $152-$154 a ton C&F for April shipment.

"I'm sure the Malaysians bought and the Indonesians were in there as well," a senior dealer for a European commodity house told Reuters.

"The deals were done," another dealer from a Singapore-based commodity company said.

Chinese and Argentine corn has become very attractive for Southeast Asian buyers who are baulking at the current high prices for U.S. corn, traders said.

Argentine corn coming into the region is being quoted by traders here at around $151-$152 a ton C&F for April/May delivery.

Corn from both origins compares favorably with that of U.S. corn coming into the region, which is seen at about $157-$158 a ton C&F for April/May shipment on a Panamax.

"I don't think U.S. corn is competitive during this period here," a trader for a U.S. commodity house said.

Aside from the corn purchases, Malaysia and Thailand also bought a Handy-sized cargo of wheat for prompt shipment, most likely from the United States, traders said.

The price of the wheat purchased by the two countries was close to the price paid by two Philippine flour mills for 40,000 tons of U.S. wheat in the past week.

Traders in Manila said the Philippines bought western white wheat at around $157-$158 a ton FOB U.S. Pacific Northwest. They also bought dark northern spring wheat at $183-$187 a ton FOB on the same basis.

The feed business in the region, however, was quiet. "There's no demand because the prices are too high," one dealer for a commodity trading house said.

But one senior dealer said some countries are mulling putting on forward coverage for the May/July period.

Traders had previously said Indonesia would need about 100,000 tons of soymeal for May/July while the Malaysians would need at least one Handy-sized meal shipment at about the same time.

"The problem really is the price. It's too high," a trader said.

U.S. soymeal coming into Southeast Asia was seen by dealers at $333-$335 a ton C&F for May shipment on a Panamax against last week's $325-$335.

Price quotes for Indian meal also rose and were indicated between $321-$322 a ton C&F on a Tweendecker against $317-$318 a ton last week, the traders said.