SE Asian grain trade quiet despite Chinese offers

SE Asian grain trade quiet despite Chinese offers

KUALA LUMPUR (Reuter): The Southeast Asian grains and oilseeds
business was quiet this week with Indonesian feedmills sitting on
the sidelines in a lukewarm response to current Chinese corn
offers, traders said yesterday.

"I think most people are quite well-stocked until May or so,"
said the purchasing manager at a flour mill in Kuala Lumpur.

"Unless there's some bargains coming up, I don't think
there'll be much short-covering."

"The market was quiet with no new orders seen this week. Most
feedmill producers were also sidelined," a Bangkok-based trader
added.

Traders in Indonesia said there had been offers of Chinese
corn at US$152-$155 a ton C&F but there had been no takers.

"Imported corn is continuing to arrive, and the imports will
continue to arrive through the month," one trader in Indonesia
said.

"Feedmills are well stocked, and are staying quiet."

"Although the Chinese corn is slightly cheaper than U.S. corn,
buyers have not been showing interest because they have booked
their orders earlier," another trader in Jakarta said.

The harvest in the key growing region of Lampung in South
Sumatra was proceeding although arrivals were expected to slow
down later this month, a trader said.

Corn was quoted by the trade at 405-410 rupiah a kg in Jakarta
against 410-415 rupiah a kg last week.

Soymeal prices were generally stable on steady demand, with
India continuing to make offers.

"Demand is there, but there has been no significant movements
in price," one Indonesian-based dealer said.

Traders said soymeal was stable at 830-840 rupiah a kg.
In Thailand, most feedmills have not yet imported corn despite
Bangkok's approval to allow the duty-free importation of 200,000
tons in 1997, traders said.

"There are no orders to import corn under the quota yet. The
market is awaiting a clearer government policy on the import
quota and corn prices in overseas markets remain higher than
domestic prices," the trader said.

Corn prices were seen at between 4.46-4.65 baht a kg from
4.50-4.65 baht last week.

A trader in Malaysia said the next upturn in demand would
probably be around July/August when the new U.S. corn crop
becomes available.

Malaysian-based traders estimated corn purchases since the
beginning of the year at around 150,000-200,000 tons. Most of the
corn came from China, which was still making fresh sales to Asian
buyers, traders said.