SINGAPORE: Thai flour millers were in the market this week looking to buy some 50,000 tonnes of US wheat for March shipment, while Indian soybean meal is facing stiff competition, with buyers opting for South American cargoes.
Vietnamese importers are likely to be in the market for 50,000 tonnes of soymeal for December shipment and about 100,000 tonnes for delivery in January, traders said on Thursday.
Australian prime wheat was quoted around $390 a tonne, including cost and freight (C&F) to Southeast Asia, up about $10 to $15 from last week, while Australian standard wheat was offered close to $380 a tonne. Australian hard wheat with 13 percent protein content was being quoted around $410 a tonne.
US soft white wheat was offered in Asia at $375 a tonne, C&F, in a bulk cargo of 50,000 tonnes, spring wheat with 14 percent protein at $422 a tonne and hard red winter wheat between $410 and $415.
Chicago Board of Trade wheat has gained more than 3 percent this week, in a second consecutive week of gains on stronger US export prospects and record-low conditions for the US winter crop.
It is in the worst condition in history as it enters winter dormancy, the US Department of Agriculture said this week. Also, global importers may turn to the United States for wheat as rival supplies in Russia and the Black Sea region shrink.
Asian wheat importers, including top buyer Indonesia, are largely covered for supplies until February, traders said.
"They will be looking to buy March delivery cargoes at some point," said one trader with a global trading firm in Singapore. "We heard that some Thai buyers are talking to traders for booking a US wheat cargo of around 50,000 tonnes for March."
Thai buyers are looking for soft white, hard red winter and spring varieties of US wheat, he said.
INDIAN SOYMEAL VS LATAM
Indian soymeal exports to Asia face stiff competition, with importers booking South American cargoes for shipments in March and beyond.
"Indian meal is competitive for January-February but there are not many takers for that period, as buyers have already booked cargoes," said another Singapore trader. "If you look at prices from March, Argentine meal is much cheaper."
South Korea's Major Feedmill Group this week bought 110,000 tonnes of soymeal likely to be sourced from South America in a tender for up to 165,000 tonnes.
Some 55,000 tonnes for arrival by May 25, 2013, was bought at $493.43 a tonne, C&F, from Glencore, while another 55,000 tonnes for arrival by June 15 was purchased at $484.40 a tonne from Nidera.
This compares with Indian soymeal being offered around $550 a tonne, C&F.
Vietnam is likely to buy 50,000 tonnes of soymeal for December arrival and 100,000 tonnes for January shipment which traders said is likely to be sourced from India.
"There is not much left in South America for shipment in December, January and February," the second Singapore trader said. "It will most likely be Indian."
India is expected to export up to 1 million tonnes of the animal feed to Iran in the year to September 2013, leading exporter Prestige Group has said.
Iran has emerged as one of the largest buyers of Indian meal this year, taking 600,000 tonnes between January and August, which drove prices of Indian meal to record highs.
Comments
Comments are closed.