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.