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Friday, November 20, 1998

Indonesia seeks rice and soybeans 

REUTERS  
Singapore, Nov 19: Indonesia is looking for rice and soybeans for nearby months, but payment issues prevented traders from striking deals with the crisis-hit nation, dealers in Singapore said on Thursday.

"I heard there were some defaults on rice shipments but we don't know how serious it is. Indonesia has been asking for very low prices which Vietnamese suppliers can not accept," said one trader in Singapore.

"It's very hard to strike a deal with Indonesia recently. The bidding price and the offering price never match," he said.

Another trader said his suppliers in Vietnam offered $272 on FOB basis, while Indonesia was looking for around $285 C+F.

"Vietnamese suppliers won't sell at that price. The price Indonesia asked for is only slightly higher than Thailand's FOB price," the trader said.

He said Indonesia was also inquiring for 30,000 tonnes of soybeans for November and December but he hadn't heard any suppliers interested.

"Again they are asking for very low prices and even at low prices,some suppliers are not that confident about the payment after the riots," the trader said.

Last week's anti-government protests in Indonesia, which forced some business districts to close, has little impact on port operations and trade had not been disturbed, several Singapore traders said.

"The market is slow because of other concerns like prices or payment, not really because of the unrest," said one.

In the corn market, traders said high Chinese prices were unattractive to the market in Southeast Asia and US corn was still in a good position.

"Myanmar is also trying to export a few hundred tonnes a month. China must bring down prices or (there's) no way it can export its corn," said one trader.

Myanmar suppliers offered corn at $105 a tonne and US corn was at around $100, while Chinese suppliers asked for around $116, he said.

The trader said he still placed inquiries with Chinese suppliers but buyers would not accept the Chinese offers.

Steady corn demand was seen from South Korea, Taiwanand Malaysia, traders said.

Offers from Indonesia, where some offers were heard in October and early November, were now scarce, they said.

In soymeals, traders saw slow but stable demand as India entered its new crop for soymeals with ample supply.

Indian soymeals were quoted at around $160 per tonne and US soymeals at slightly under $170, both little changed from levels a week ago.

The wheat market was quiet and traders did not see fresh demand from the region.

"Indonesia still has enough stocks. Maybe we'll have to wait until December to see if they need January onward shipments," said a trader.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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