Thailand, Indonesia seen buying soybeans

Thailand, Indonesia seen buying soybeans

SINGAPORE (Reuter): Thailand and Indonesia are close to
clinching a deal to buy 63,000 tons of soybeans from South
America or India, Singapore traders said yesterday.

But two-month old reports that China will export 1.0 to 1.5
million tons of corn was written off by dealers here and the
grain market here is now focusing on demand for the last quarter
from countries in the region, the traders said.

"It's imminent," a trader in a European commodity house said
when asked about the soybean purchase by Indonesia and Thailand.
"They're in the market for the 63,000 tons of soybeans and they
should close it soon," another trader said.

Traders said both countries were looking for soybean prices
around US$5-$15 lower than those currently quoted for Chicago
Board of Trade (CBOT) futures.

The CBOT July soybean contract closed2-3/4 U.S. cents down on
Tuesday at $7.75 a bushel.

Indonesia is seeking 30,000 tons of soybeans for
September/October shipment while Thailand wants 33,000 tons for
October delivery, the traders said.

With China taking heavy deliveries of U.S. soybeans and
soymeal, the two countries will probably buy soybeans from
Argentina, Brazil and smaller parcels from India, they added.

Otherwise, the grain and oilseeds market in southeast Asia was
quiet.

"Aside from Indonesia and Thailand trying to get their hands
on soybeans, everything else is routine," one trader said.

But China said the sales to its two neighbors were exceptional
and Singapore-based grain traders said last week Beijing had
finally rejected proposals to lift the ban.

"It's a dead issue. I think the government there basically
said no," one trader in a commodity house said.

"I don't think it's ever going to get off. We've stopped
thinking about it," another trader said.

The focus of the market has shifted to the weather in key-
grain growing areas in the United States, China and India,
traders said.

Adequate rainfall in the U.S. would help ease pressure on
wheat and corn prices later this year. Any shortfall in monsoon
rains in India or China may force them to buy heavily in the
grains market, driving prices up, the dealers said.

"This would put a lot of pressure on cash-strapped nations
when they come in to buy their grain needs in the last three
months of the year," a dealer said.

India's southwest monsoon looks to be adequate while reports
have reached traders of less than optimal rainfall in China.

"If the rains are not enough, this may affect China's corn and
soybean crop. The eastern corn belt in the United States also got
off to a bad start. That's what the market is focused on so
everybody's on a wait-and-see mode for now. If the weather does
not improve, it may trigger panic-buying in the market," a trader
said.