RI, Malaysia buy 60,000t U.S. soybeans
RI, Malaysia buy 60,000t U.S. soybeans
SINGAPORE (Reuter): Malaysia and Indonesia bought a combined
total of 60,000 tons of U.S. soybeans as the rest of Southeast
Asia's grain and oilseeds trade sat back to wait for the USDA
crop report due today, traders said yesterday.
"There's been some sporadic buying going on, but everybody's
waiting for the USDA crop report which will give people here
leads on their buying orders," a senior trader in a Western
commodity house said.
The soybeans bought by Malaysia and Indonesia are for
January/February shipment on Handy-sized vessels and were
reported to have been sold at around US$315-$325 a ton C&F,
traders said.
Thailand also recently concluded a deal for 10,000-12,000
tons of Indian soymeal/groundnut meal at around $310-$312 a ton
C&F, for mid-November to mid-December shipment, one said. The
Malaysian soybean purchase came on top of the recent decision by
the country's Federal Flour Mills Bhd to buy 25,000 tons of U.S.
corn for November shipment at around $160 a ton C&F. A Malaysian
company is also negotiating on another 50,000 tons of U.S. corn,
traders said.
"The negotiations are still going on," one dealer said.
Singapore traders' estimates of expected near-term Malaysian
and Indonesian soymeal purchases ranged between 100,000 and
200,000 tons for possible shipment in early 1997.
"They're in for about 100,000 tons of soymeal each, but like
everyone else, they're holding back for the USDA report," the
dealer said.
"China is buying huge quantities of soymeal. Indonesia,
Thailand and Malaysia have not covered yet and they've all got
their mouths open," another dealer said.
Another dealer discounted the estimate of 200,000 tons as "too
large" and said it was more likely that both nations will buy
only a combined total of 100,000 tons of soymeal.
"I think a combined shipment of 100,000 tons of soymeal is
more probable," he said.
Traders said most buyers are sitting it out in anticipation
that the U.S. Agricultural Department (USDA) crop report will be
bearish for corn and soybeans.
Analysts in the U.S. estimate that 1996 corn production will
reach 8.951 billion bushels, up from the USDA's September
forecast of 8.804 billion bushels. The forecast for the U.S. 1996
soybean crop is 2.287 billion bushels against the USDA prediction
of 2.270 billion bushels in September.
"Some people are hoping prices may head lower after the
report," one dealer said.
"It looks like corn will correct some more," another said.
The price of U.S. corn in Southeast Asia remains steady at
around $155-$160 a ton C&F on a Panamax vessel for November-
December shipment, dealers said.
U.S. meal is being quoted at around $300-$305 a ton C&F
Southeast Asia on board a Panamax vessel against $307-$309 a
ton C&F last week.
Indian soymeal, on the other hand, is priced in Southeast Asia
at around $310-$314 a ton C&F for the same shipment period, down
from $316-$318 a ton C&F last week, traders said. "Indian soymeal
has come down between $10-$12 in the last couple of weeks on the
back of the decline in prices in the U.S., but I think they are
going to stay quite firm into the harvest," a trader said.