* Thai mills buy 110,000 T of feed wheat for Oct-Nov
* Vietnam takes South American corn for Dec shipment
* India sells wheat to Bangladesh, eyes more deals
By Naveen Thukral
SINGAPORE, Aug 2 Thai millers bought 110,000
tonnes of feed wheat for October-November shipment in recent
deals, while buyers in Vietnam booked South American corn
cargoes for December arrival.
Indian grain exporters were active this week, selling some
40,000 tonnes of wheat to Bangladesh as global prices firmed,
Thai millers paid $258-$259 a tonne, including cost and
freight (C&F), for optional origin wheat but traders said the
cargoes will come from the Black Sea region.
"It will be completely Black Sea as you can't get cheaper
prices for feed wheat from any other origin," said one
Singapore-based trader who was aware of the deals.
Wheat buyers in Asia are looking to replace Indian and
Australian cargoes in the lower-end feed grain market with
cheaper supplies from the Black Sea which are returning to the
region after a three-year gap.
Vietnamese grain importers bought South American corn for
December shipment, taking close to 150,000 tonnes at around
$255-$260 a tonne, C&F, in deals signed over the last few weeks.
Typically, Vietnam buys cargoes just a month or two in
advance but this year the country has been making forward
purchases as it takes advantage of lower global prices.
"Vietnam is almost fully booked until December shipment,"
said another grain trader in Singapore. "This is something
unusual for a country which mainly takes prompt shipments."
Global corn prices have fallen more than 40 percent
since hitting a record high of $8.43-3/4 a bushel in August last
year when a devastating drought across the U.S. grain belt
curbed world supplies.
INDIAN WHEAT, UKRAINIAN CORN
Asia buyers are also looking to buy corn from Ukraine which
is offering attractive prices but no deals have been signed.
Ukrainian corn is being offered around $245 a tonne, C&F,
compared with South American corn being sold at $250 a tonne for
"Prices are attractive for Ukrainian corn but we have not
seen any deals taking place," the second Singapore trader said.
"Some buyers might be looking for a bigger discount. There could
some buying interest if the spread widens to $15 a tonne."
In India, exporters are actively selling wheat to millers in
Bangladesh. Around 40,000 tonnes of Indian wheat has been sold
at $282-$290 a tonne, free on rail.
"Wheat from eastern Uttar Pradesh (northern India) will be
transported to Kolkata and then sent by road to Bangladesh,"
said a trader in India. "We expect more deals as there is good
U.S. wheat gained 0.6 percent on Friday, taking its
gains for the week to 1.8 percent.
Wheat millers in Pakistan are looking to sign more deals for
Russian wheat after taking 250,000 tonnes, which is likely to
start arriving by the second week of August.
"I think people are just waiting for government's decision
on withholding tax after which there should be more buying,"
said a Karachi-based trader.
Authorities in Pakistan are under pressure from the industry
and state governments to abolish a 5 percent withholding tax on
wheat imports, which will bring down the cost of the imported
grain. The cabinet's Economic Coordination Committee (ECC) is
likely to take up the issue in the coming days, traders said.
Pakistan is set to become a net wheat importer this year
with purchases climbing to the highest in five years after
delayed planting and reduced fertilizer use hit domestic output
and drove up local prices.
(Reporting by Naveen Thukral; Editing by Sunil Nair)