U.S. grain trade sees gains in Indonesia ban

U.S. grain trade sees gains in Indonesia ban

SINGAPORE (Reuters): The U.S. grains trade is hopeful that a ban by Jakarta on Argentine grain imports due to foot-and-mouth fears will open the door to greater sales to Indonesia, a U.S. Grains Council official said on Friday.

The U.S. grains trade has already clinched a few corn deals

to Indonesia after the ban as the local commercial animal feed industry scouts for alternative supplies.

"It will certainly give a chance to U.S. grain exporters to boost their sales to Indonesia," Cary Sifferath, regional director of the U.S. Grains Council, told Reuters in a telephone interview from Jakarta.

Sifferath is currently on a visit to Indonesia to discuss U.S. grain sales prospects amid a ban by Jakarta on grains from Argentina and the European Union due to fears of the highly contagious foot-and-mouth disease.

The ban on Argentine grain comes at a time when the South American harvest is at its peak and prices are relatively low. In recent months, U.S. grain sales to Indonesia have already been given a boost by credit guarantees.

"Indonesia has bought 20,000 tons of U.S. corn after the ban. We are hopeful of a few more deals," Sifferath said. He did not give price and shipment details for the new contracts.

On Friday, Indonesia lifted a ban on Indian soymeal and processed corn from China but said it would maintain the ban on grains from Argentina and several other countries.

Indonesian government officials added that imports of raw grain from countries seen at risk from foot-and-mouth, including Brazil, Peru, France and Ireland, would be permitted, but would be subject to tough inspection and quarantine measures.

"Right now, there is a lot of confusion in the Indonesian grains market. It is very difficult to say when the ban will be lifted," said Sifferath, who is currently holding meetings with grains trade officials in Indonesia.

Sifferath added that one U.S. soybean cargo had just finished unloading at one Indonesian port and another U.S. soybean cargo was expected to arrive in a day or two.

He said one Argentine soymeal cargo, originally scheduled for Indonesia, was now heading to Thailand.

"The soymeal cargo has been diverted to Thailand. "I don't know what will happen to Argentine corn cargoes. Two Argentine corn cargoes are anchored offshore now," he said, adding that one was a 38,000 ton cargo and the other was about 60,000 tons.

Sifferath said one Brazilian corn cargo of 60,000 tons was also on its way to Indonesia. "Let us see what happens to the Brazilian cargo."

Brazil is expected to become a net corn exporter for the first time since 1982. It is expected to export about 800,000 tons of corn in the 2000/01 marketing year, joining Argentina, China and other small corn exporting countries.

"There is market talk here that the two Argentine corn cargoes would be diverted to Malaysia. But I am not sure about it. Malaysia already has a lot of corn on hand. Unless there is a big discount offer, selling it to them would be difficult," Sifferath said.

Indonesia was declared free from foot-and-mouth in 1990 and since then has imposed bans on meat and animal products from nations hit by the disease and only recently, on grain imports.

Indonesia is a big buyer of corn, soybeans and soymeal with annual imports of each commodity amounting to more than one million tons.