Asia Grains-Indonesia Steps Up Corn Imports From India.

Indonesia has stepped up corn imports from India after snapping up a major deal with New Delhi early this week, while Sri Lanka and Nepal are likely to place orders for Indian cargoes.

Traders said Indonesia, trying to secure supplies of some essential food products, has bought an additional 200,000 tonnes of Indian corn after striking a deal to buy 100,000 tonnes in its biggest import contracts with New Delhi in at least two years.

"Indonesia has stepped up imports from India as it finds Indian corn very competitive. We have to remember that U.S. prices are going up, making Indian corn really attractive," said Amit Sachdev, India representative of the U.S. Grains Council.

On Thursday, Chicago Board of Trade corn soared to a two-week high with spot May ended above $7 a bushel for the first time since March 7.

CBOT corn has resumed its long-term uptrend and a bullish target at $7.29 per bushel has been established, according to Wang Tao, who is a Reuters market analyst for commodities and energy technicals.  

 Sachdev said Indonesia would buy more corn from India due to favourable prices.

Traders say Indian corn is at around $320 per tonne, including cost and freight against $345 quoted for rival South American cargoes.

In addition, Bangladesh bought 500,000-600,000 tonnes of Indian corn, while Nepal and Sri Lanka are expected to import soon.

"Nepal, Bangladesh and Sri Lanka put together will buy more than 800,000 tonnes of corn from India," said a New Delhi-based trader.

India, a key supplier of corn to southeast Asia, is likely to export 2.8 million tonnes in the year from October, sharply up from about 700,000 tonnes in 2009/10.

WHEAT, RICE

Indonesia and Malaysia continued to buy high-protein wheat from the United States.

U.S. wheat was quoted at $450 per tonne against $460-$470 for Australian wheat.

 Benchmark Chicago wheat futures rallied on Thursday, with the contract gaining 3.6 percent to 7.39-1/2 a bushel due to concerns that this year's U.S. crop will fail to boost global supplies to comfortable levels.

CBOT wheat will gain further to $7.62-1/2 per bushel, as a powerful wave (3) has started, according to Tao.

Australia's prime wheat was being offered at $380 a tonne, free on board, a gain of $50 from last week. Australian standard wheat was quoted at $370 a tonne.

U.S. standard white wheat was at $370 per tonne, dark northern spring wheat at $455 and hard red winter at $405.

On Thursday, Japan bought a total of 103,125 tonnes of food wheat from the United States. The cargo is for May loading.

Japan buys about 5 million tonnes of foreign wheat a year for milling use, which accounts for about 90 percent of domestic consumption.

In a move likely to push up rice prices, the Philippines has decided to import 200,000 tonnes of rice from Vietnam, the world's second-biggest exporter of the staple.

Thailand benchmark 100 percent B grade white rice RI-THWHB-P1 was offered at $490 per kg, down from $500 last week.

Bangladesh also signed two government-to-government deals on Friday for a total of 400,000 tonnes of rice WEEKAHEAD

Asian buyers, including Thailand, may import wheat despite a rise in prices. Nepal and Bangladesh to place orders to import corn from India.

Source : af.reuters.com