SINGAPORE: Flour millers in Malaysia and Indonesia have bought 35,000 tonnes of US wheat in recent deals while Indian soymeal prices remained firm on concerns over late season rains damaging the soybean crop.
US white wheat was sold to mills at around US$300 a tonne, including cost and freight, while spring wheat was traded at US$360-US$370 a tonne, traders said.
Chicago wheat futures are taking a breather after rising for four consecutive weeks to the highest since late June as adverse weather hit output in key producing countries.
A Singapore-based mill also bought about 20,000 tonnes of US white and spring varieties of wheat, traders said.
South Korean flour miller Samyang Milmax Corp has bought a total of 23,000 tonnes of US milling wheat via tenders, a South Korean trader said.
The flour miller purchased wheat from Cargill, the trader said, but declined to disclose prices.
South American corn was offered marginally higher in Southeast Asia at US$247 a tonne, C&F, on the back of higher US futures.
"Corn prices have firmed this week but there is not much demand in Southeast Asia," said one feed grains trader in Singapore.
"Indonesia and Vietnam are booked up to January and February and other are in no hurry to buy."
Malaysia has yet to cover some 60,000 tonnes of corn for January shipment but feed makers have yet to hit the market to book supplies.
Chicago corn futures are up 2.7 per cent this week, the biggest weekly gain since mid-July on demand led by China, which has been snapping up US cargoes.
Chinese agricultural consultancy Shanghai JC Intelligence said China has bought nearly 1.2 million tonnes of corn this month.
Grain processors in the Philippines are eyeing around 80,000 of Australian feed wheat for January shipment, with prices of Black Sea wheat rising on concerns over lower production, traders said.
"Australian wheat shipments to the Philippines enjoy a tax benefit of around seven per cent which makes the wheat attractive form feed millers," the Singapore trader said.
"They need wheat for arrival in January and by then Australia’s new-crop supplies will be available in the market."
Indian soymeal prices remained firm at around US$560-US$570 a tonne, C&F, on reports that late rains in parts of the crop belt in central India have damaged the quality of beans.
"They have quality issues with meal as moisture content in beans is too high," said a second Singapore trader who sells soymeal and corn into Asia. "The supply of high-protein meal is tight in India."
Vietnamese feed makers booked soymeal in containers from the United States, which is making competitive offers.
US soymeal is being offered at a premium of US$110 a tonne over December Chicago futures on a C&F basis as compared with US$127 premium for Argentine meal, traders said.
Taiwan’s Breakfast Soybean Procurement Association purchased 60,000 tonnes of soybeans to be sourced from the United States in an international tender this week.
The purchase was made at a premium of US$2.5249 a bushel C&F over the Chicago July soybean contract, traders said. The seller was Japanese trading group Zen-Noh.-- Reuters