RI wants to import more corn, soymeal

RI wants to import more corn, soymeal

SINGAPORE (Reuter): Indonesian buyers are seeking between 20,000-50,000 tons of corn and over 50,000 tons of soymeal after recently buying a Panamax-sized cargo of Argentine corn for July shipment, dealers said yesterday.

"I heard the Indonesians are looking for Argentine or U.S. corn for June/July shipment," one trader for a U.S. firm said, adding the quantity could reach 50,000 tons.

Another dealer said Indonesian buyers were "checking prices on and off. They have not covered their positions up to that point so I think they may be in for 50,000 tons (of corn)."

Indonesia is also said to be hunting for about 50,000 tons of soymeal for late June shipment, traders said.

"They want 50,000 tons or slightly more," one said. Traders said the Indonesians were probably given a slight discount for the Argentine corn they bought. Regional dealers were quoting Argentine-origins at around US$144-$145 a ton C&F on a Panamax for June/July shipment.

The only other buyer seen in the market is Thai Vegetable Oil, which is said to be close to clinching a deal for 50,000 tons of soybeans for June shipment from Brazil, dealers said.

Malaysia, on the other hand, is said to need about 20,000 tons of soymeal, but is in no hurry to buy because it has put on ample coverage. Thailand may also pick up 20,000 tons of soymeal in the next few weeks, the traders added.

Dealers said an attractive option for buyers would be Argentine or Brazilian soymeal, which is being quoted by the trade at a discount against U.S. origins and seen at around $315- $325 a ton C&F on a Handy vessel for June/July shipment.

"Some of the buyers are putting off their purchases for late June or early July because they think prices will come off sharply by then," one trader said. "They also feel they can use other substitutes, especially for soymeal."

The rest of the grains and oilseeds market in the region remained quiet, with some dealers saying the Chinese were still making offers for corn although there were no takers.

"There's nothing substantial really going on at the moment. People are just very well-covered," one trader said.

Chinese corn was quoted by the trade at around $145-$148 a ton C&F Southeast Asia on a Handy for June/July shipment.

Chinese and Argentine origins maintained their discount to U.S. corn, which was seen by dealers here at about $149-$152 a ton C&F on a Panamax for June/July shipment.

The trade is also waiting for clearer signals from Thailand's Commerce Ministry on rules for the duty-free importation of 200,000 tons of corn.

"What we understand is that buyers there have not received the green light to import. That's what they're waiting for," a trader said.

"People are saying 'Why should I buy unless I need it?' That's why the market is so slow," one trader said.