Indonesia looking for 15,000 tons of corn
Indonesia looking for 15,000 tons of corn
SINGAPORE (Reuter): Indonesia is looking at buying up to
15,000 tons of corn for May/June delivery, but its buyers are
shying away because prices remain a shade too high, regional
traders said yesterday.
Malaysia will be looking to buy at least 90,000 tons of corn
for the May/July period and Thailand may also be in the market
for 50,000 tons of corn, possibly from Argentina, the traders
said.
"From May to July, the Malaysians are looking at getting
30,000 tons of corn for each month. They're looking, but the
problem is the price," a dealer for U.S. commodity house told
Reuters.
The likely origin of the corn will be either Argentina or
China. U.S. corn has priced itself out of the picture, dealers
said.
Chinese corn coming into Southeast Asia was quoted by the
trade at around US$150-$153 a ton C&F for May/June shipment on
board a Panamax or a Handy. Argentinean corn was seen at the same
level on a Panamax, the dealers said.
U.S. corn going into the region, however, was seen by the
trade at $157-$158 a ton C&F on a Panamax.
"U.S. corn is just not competitive at these levels," a trading
house dealer in Singapore said.
Traders said Malaysian buyers would want a price of around
$148-$149 a ton C&F.
"The Malaysians are already covered on the nearbys so they're
sniffing around for some forward stuff," one dealer said. "They
may also go for a combination cargo of soybeans and corn."
Indonesian buyers may also be in the market for corn and will
probably buy if the domestic price continues to rise, traders
said.
The price of corn was quoted by Indonesian dealers on
Wednesday at Rp 410-415 a kg, up from last week's quote of Rp
400-410.
"If the local corn price goes up further, the Indonesians will
come in and buy," one dealer said.
Another trader added: "I heard the Indonesians may need at
least one Handy for 10,000 to 15,000 tons of corn for May
shipment."
The Indonesians are looking for a price just a shade below
$150 a ton C&F, dealers said. Buyers there are seen tapping
Argentine or Chinese origins.
Regional business was slow except for the recent purchase by
Thailand of 24,000 tons of U.S. wheat and the 55,000 tons of
Canadian and U.S. wheat bought by flour companies in the
Philippines.
Thailand also recently bought 50,000 tons of Argentinean corn
for prompt shipment while Malaysian buyers picked up 30,000 tons
of mostly Chinese corn.
The soymeal and soybeans business in the region remained quiet
with the high prices of Chicago futures keeping buyers glued to
the sidelines.
"(Soy)beans is pretty dead for the moment," a U.S. trader
said. "Chicago went up so everybody stayed out."
Traders said U.S. soybeans going into the region fetched a
quote of $350-$353 a ton C&F on a Panamax for May/June shipment
against $343-$345 a ton C&F on the same basis last week.
Indonesians who have open positions for up to 100,000 tons of
soymeal for May/July are sitting on the sidelines because they
are in no hurry to come in with prices so high, dealers said.