Malaysia, Indonesia eye March wheat; India sells meal

Indonesia is likely to be in the market for some 100,000 tonnes of wheat for March shipment, while Malaysia is expected buy around 60,000 to 80,000 tonnes early January when traders and millers return from the year-end break. India, which sold around 10,000 tonnes of soyabean meal to Vietnam in holiday-thinned trading this week, is likely to corner more deals on competitive offers, regional traders said.
"Most mills in Asia are covered until March, but Malaysia and Indonesia are still open form some cargoes," said one trader with an international trading firm in Singapore. "I think they are going to buy as soon as they come back because prices are going up."
US-origin dark northern spring (DNS) wheat with 13 percent protein content was quoted around $450 a tonne, including cost and freight, in Asia this week, while the same variety with 13-1/2 percent protein level is being offered at $470 a tonne, C&F.
US soft white wheat is selling around $365 a tonne, with prices of all varieties of US wheat having climbed $15-$20 in the last 10 days. "Prices have risen in line with Chicago futures as supplies are likely to get tighter as we go into 2011," said another trader who sells US and Australian wheat into Asia.
Australian prime wheat was quoted at $420 a tonne, up $10-$15 from last week, while there were no offers for high-protein Australian prime hard wheat which has been severely damaged by excessive rains on Australia's east coast. "Australian hard wheat is rare, we are not getting any offers," he said. "The value should be around $480 or $500, a tonne."
US wheat futures have jumped more than 20 percent this month as excessive rains in Australia and dry weather in the United States raised concerns over supplies in 2011. Still, flash flooding and mudslides forecast for the holiday weekend over sugar-growing district of Queensland are likely to spare wheat producing regions.
This year's lingering wheat crop centered further south in New South Wales state, may be spared the latest deluge, allowing more crops to dry out and get harvested in what forecasters are predicting will be a bumper crop of more than 26 million tonnes. However, the crop quality is still in question as excessive rains have slashed the protein content.
In the animal feed business, India sold some 10,000 tonnes of soyabean meal to Vietnam in containers at around $420-$425 a tonne, C&F and traders said more deals were likely in January. "Indian meal is now very competitive compared with South American cargoes, we expect good business early next year," said a Singapore-based feed grain trader. "We think Vietnam and Thailand will have bulk deals for Indian meal."
Traders said Indian soyameal was quoted around $420-$425 a tonne in containers and $440-$445 in bulk shipment, a gain of $5 from last week. This compared with South American soyameal offered around $480 a tonne, a rise of around $15 from the past week.