Sunday 27 May 2012

Philippines seeks 100,000 tonnes of Australian feed wheat


Feed millers in the Philippines are seeking 100,000 tonnes of Australian feed wheat, while South Korean buyers were in the market checking prices this week for some 200,000 tonnes of the grain to be shipped in the last quarter.

Asian grain buyers have been actively eyeing corn and wheat cargoes as global grain prices eased this week, hit by risk aversion and slowing demand.
"Most buyers in Southeast Asia are covered up to July," said one Singapore-based grains trader.

"I think half of the positions are still open for August and September while almost everyone is looking for October-December arrival cargoes." The buyers form the Philippines were negotiating deals on Friday to take Australian feed wheat for November and December shipment, after signing contracts to take more than 200,000 tonnes in the last two weeks.

Chicago Board of Trade corn is down 7.6 percent this week after a US Department of Agriculture weekly export sales report came in lower than expected.
The USDA said weekly export sales of corn were 482,100 tonnes (old crop and new crop combined) and below estimates for 1 million to 1.3 million tonnes.

July soyabeans are down 1.6 percent this week, falling for the fourth consecutive week, while wheat is down nearly 4 percent following a rally of nearly 17 percent last week when the market notched up its biggest weekly gains in 16 years.
As a result of last week's rally, millers in the Philippines may have to pay around $295 to $300 a tonne, including cost and freight (C&F), up from around $270 to $285 a tonne paid in earlier deals, traders said.

South Korean buyers were seeking offers from private traders for 200,000 tonnes of feed wheat for October-December delivery, but no deal has been signed.
"I think they were just checking prices and not really keen at the current prices," said another Singapore trader.

"They will have to pay close to $300 a tonne, which is not very comfortable after having bought feed wheat below $270 a tonne in recent deals." Taiwan's Breakfast Soyabean Procurement Association has purchased 115,000 tonnes of soyabeans from Brazil in a tender for 120,000 tonnes which closed on Friday.
The market is also closely watching India, which is trying to sell wheat from its burdensome stocks after the arrival of a new crop has worsened storage problems.

Six companies, including global traders, bid for wheat from India's stocks to sell overseas at prices between $150 and $230 per tonne, trade sources said, prices that might tempt the world's second-biggest producer as it tries to cut its huge stockpiles.
The tender was floated by State Trading Corp to test the waters for potential exports to countries including sanctions-hit Iran.

"Indian wheat can be attractive only if the government offers subsidies," said the first trader.

"It is still expensive as compared to the international market despite US prices going up last week." India is trying to export some of its stocks to make room for a record harvest of 90.23 million tonnes this year.

Wheat stocks at government warehouses on May 1 were 38.2 million tonnes, more than nine times the official target.
Copyright Reuters, 2012

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