"Some importers are likely to seek about 100,000 tonnes of corn this week, but others will stay on the sidelines as grain prices in Chicago seem set to fall further," said a trader with a foreign grain trading firm.

The trader said the importers were said to be seeking corn either from the United State or China for shipment between July and August.

"The importers will anyway pick up low-priced corn," he said. Corn futures on the Chicago Board of Trade (CBOT) extended losses in the Project A system trading during Asian hours on Monday on the outlook for good crop weather, at least through next week, traders said.

July corn contracts fell to 6-cents per bushel to $2.44 against $2.50- on Friday, down 3-cents from the previous day.

Traders said the decline in CBOT's grain prices has made Chinesecorn comparatively less attractive and may push local importers to seek US corn with the GSM-102.

But it would be limited by the threat of a possible devaluation of the Chinese yuan, pressured by the weak Japanese yen, they said.

Any devaluation of the yuan would induce local importers to buy more Chinese corn, especially if it became $10 to $15 a tonne cheaper than US corn, they said.

The prospect of cheaper Chinese corn or an expectation of further weakness in US grain prices was encouraging local importers to wait a while before placing orders for September deliveries, said a trader with a major feed mill firm.

The trader said poor domestic feed demand following the economic meltdown, along with slowing demand for meat, has also pushed them to delay their purchases of grains and oilseeds as long as possible. The economic crisis has caused local livestock and poultry breeders to experience a severe credit crunch as they have to pay more for feed.

The slumping economy has also dampened thecountry's meat consumption as consumers cut back on spending, he said. The country largely depends on imports of feed ingredients such as corn, feed wheat, soyameal and others.

Traders said Cheil Jedang Corp and Dongah Flour Mills Co Ltd were said to have jointly sought about 25,000 tonnes of Australian milling wheat for shipment between September and October.

But they said most local flour millers were expected to stay sidelined for a while as they have covered their needs for September/October shipments. A trader for Pan Ocean Shipping Co Ltd said freight rates for a Panamax-sized cargo for spot shipment from the Pacific Northwest fell to $9.25 per tonne from $9.50 a week earlier.