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.