SE Asian corn prices slide under pressure

SE Asian corn prices slide under pressure

KUALA LUMPUR (Reuter): Southeast Asian corn prices continued to slide under domestic harvest pressure this week, although Malaysian prices stabilized despite local buyers' moves to buy U.S. corn as futures fell, traders said yesterday.

"The local corn market had been selling below international prices for some time now and that's why it's not retreating now," one Malaysian trader said.

Malaysian buyers have secured at least 120,000 tons of corn in the past few days after Chicago Board of Trade (CBOT) corn futures slumped on near ideal growing weather in key crop areas in the U.S. Midwest.

Traders discounted reports that Malaysia might be in the market for a further 130,000 tons of corn this week as U.S. Gulf export prices have been rising in response to strong Asian demand and as CBOT futures reversed their downtrend on Tuesday.

In Thailand, the domestic maize/corn price paid by feed producers eased to an average 268 baht/60 kg from 287 baht/60 kg last week as feedmills continued to hold off from buying because of still abundant supplies of imports and the new crop coming on to the market, traders said.

Thailand imported about 190,000 tons of corn during April/May, mostly from the U.S., but also some from South America, traders said.

Thai soymeal prices are largely steady at between 9.60-9.80 baht/kg from 9.60-9.70 baht/kg a week ago.

A small shipment of 6,000 tons of soymeal recently arrived from India at a minimum price of US$290/ton but it was seen as being too small to affect the market, a trader said.

Indonesia

In Indonesia, domestic corn prices were also easier on supply pressure from the continued arrival of imports and harvests in key growing areas, traders said.

They said corn was quoted at Rp 550-560/kg in Jakarta, compared with Rp 560-570 a week ago. Soymeal prices were also easier at Rp 790-800, against Rp 800 last week.

"I have been selling mostly to the districts," a corn trader from the growing region of Lampung in southern Sumatra said. "Demand from Jakarta has been weak," she added.

The daily arrival of harvested corn was less during the current harvest due to adverse weather during the planting season, she said.

An executive with a Jakarta feedmill said feedmillers were trying to push down prices Rp to 530 by the end of July.

"Their objective is to push local prices below the Rp 500 level by end of the year," he said.

The executive said previously-contracted corn imports were continuing to arrive in Jakarta, but he added that buyers could buy more U.S. corn if Chicago prices resumed their fall.

He said there had been corn offers from Vietnam at around $200 a ton FOB but he was not certain if deals had been done.