SE Asian corn prices ease on bumper stocks

SE Asian corn prices ease on bumper stocks

KUALA LUMPUR (Reuter): Southeast Asian corn prices fell again on ample stocks with buyers waiting for the U.S. Agriculture Department (USDA) crop projection report, traders said yesterday.

"Malaysia and Indonesia bought a lot in the last two weeks but they're sidelined now, waiting for the USDA numbers," said a grain dealer in Singapore. The USDA report is due on Monday.

Some 141,000 tons of corn were taken up by Malaysian buyers alone in the last fortnight, traders said. Indonesia bought about 100,000 tons.

Malaysian prices also softened because warehouses continued to reject shipments due to a shortage of space and over anticipation that the USDA data would be bearish for corn.

Indonesian corn prices also weakened due to ample stocks among feed mills, trade sources said.

"The price continues to fall as there are no buyers. It is quiet. Supply is still adequate," one trader from the key growing region of Lampung in South Sumatra said.

Industry talk of plans by the state logistics agency (BULOG) to get feed mills to import corn next month have not yet been confirmed, another trader said.

Corn was quoted around Rp 530-540/kg in Jakarta, against Rp 540-550 last week. Soymeal was steady at Rp 790-800.

Bulk corn in Malaysia was quoted at between 530 and 540 ringgit at ex-factory/godown rates in the central region, compared to 540 and 560 ringgit previously.

Imported soymeal in bags were priced unchanged around 745 ringgit per ton at ex-factory/godown rates central region. The local material in bags was also steady at 770 ringgit.

"A" grade wheat in bags fetched around 930 ringgit a ton ex- factory/godown central region while low-grade wheat in bags reached 650 ringgit.

In Thailand, the domestic maize price paid by feed producers eased this week to 260 baht/60 kg bag from 268 baht/60 kg but was expected to firm into next week because of unreliable supplies from farmers in the provinces, traders said.

"Prices are going to go up a little but not too strong," one Thai trader said. "Upcountry, the farmers don't want to harvest the maize. They're looking for higher prices and also there has been a lot of rain, especially in the east, which is affecting the harvest."

Thai soymeal prices eased slightly to 9.60-9.70 baht/kg on Tuesday from 9.70-9.80 baht/kg last week and prices were expected to continue easing on the arrival of a 54,000 ton shipment from the United States, traders said.

"The price should come down a little because of the shipment," one trader said. The price of the shipment was not available.

In Singapore, regional traders said yesterday that Indonesia and Malaysia may buy small cargoes of corn within the next two weeks, but action in regional grain markets will remain slow.

"I think in one or two weeks, Indonesia and Malaysia may get in for one or two vessels of corn of less than 50,000 tons each," a Western commodity house trader said.