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.