SE Asian corn prices steady

SE Asian corn prices steady

KUALA LUMPUR (Reuter): Domestic corn prices in Malaysia and
Indonesia were virtually unchanged on the back of ample supplies
in the market, regional traders said yesterday.

The two countries have built up their stocks by importing
heavily in recent months, dealers said.

But prices in Thailand climbed briefly when monsoon rains
hindered the harvest before falling back when increased supplies
from the fresh Thai harvest began reaching the market, they said.

"Countries around the region all well-covered on their nearby
months," a Singapore-based grain trader said.

The U.S. Agriculture Department crop report on Monday forecast
the 1996 corn harvest at 8.695 billion bushels, sharply below
analysts' estimates of 8.998 billion. It had no impact in the
region because supplies were abundant, the traders said.

The reduction in the USDA corn crop projection boosted prices
of corn futures in the Chicago Board of Trade. The December
contract rose 7-1/2 U.S. cents to end on Tuesday at $3.49 a
bushel.

"That's why the local market did not follow the international
price," a trader at flour mill company in Kuala Lumpur said.

Bulk corn in the local market was unchanged at 530 to 540
ringgit a ton at ex-factory/godown rates in the central region,
dealers said.

Indonesian corn prices were also stable in the main Jakarta
market as stocks remained sufficient, traders said.

They said corn was steady at around Rp 530-540/kg, about the
same as last week, with recent imports keeping stocks high.

Outside of Jakarta, prices had started to rise slightly as
stocks started running down at the end of the harvest season.

"The price has risen a little as it's the end of the harvest
season and stocks are exhausted," said one trader in the key
growing region of Lampung in South Sumatra.

Soymeal was stable at Rp 780/kg, down from last week's Rp 790-
800/kg in the face of good stocks, traders said.

In Malaysia, imported soymeal in bags was priced around 760
ringgit per ton at ex-factory/godown rates in the central region
from 745 ringgit the week before. Local soymeal in bags fetched
around 777 ringgit compared to 770 ringgit previously.

"A" grade wheat in bags fell 50 ringgit to around 880 a ton
ex-factory/godown central region while low-grade wheat in bags
dipped 50-70 ringgit to a range of 580-600.

In Thailand, corn prices climbed to 272 baht/60 kg bag late on
Friday after rains in the north of the country hindered the
transport of the harvest to local markets.

Prices then eased to 266 baht/60 kg on Tuesday when more
supplies began reaching the market after the problem was
resolved, traders said. Corn prices were quoted at 260 baht on
Tuesday last week.

Dealers expected more supplies from Thailand's projected four
million ton maize crop in the 1996/97 (July/June) season, but
said local maize prices may not decline much further due to
rising demand.

Bangkok soymeal prices eased slightly to 9.60 baht/kg from
last week's 9.60-9.70.

"Domestic soymeal buyers are waiting for arrival of Indian,
and later Brazilian, imports which should help ease prices," a
trader said.

Prices would also be pressured by the domestic soybean
harvest, which starts reaching the market in late September or
early October, traders said.