September 21, 2012 / 8:57 AM / 6 years ago

Asia Grains-Philippines eyes January feed wheat, corn prices fall

* Philippine mills in market for 60,000 T wheat

* Malaysia yet to cover Nov, Dec corn imports

* South American corn offered in Asia at $310/T

* S.Korea buys soymeal; eyes corn, feed wheat

By Naveen Thukral

SINGAPORE, Sept 21 (Reuters) - Feed millers in the Philippines are looking to buy 60,000 tonnes of feed wheat for January shipment while South Korea is seeking corn, as declining prices lure Asian buyers back to the market.

While U.S. and South American grain prices being offered in Asia lost more ground this week, tracking weakness on the benchmark Chicago Board of Trade, Australian wheat values were largely unchanged, with dryness threatening yields.

“Corn, soybean and wheat prices have all come down, which is generating some interest,” said one Singapore-based trader. “But it hasn’t picked up much as buyers are expecting prices to fall further.”

Chicago soybeans rose 0.8 percent on Friday, boosted by bargain hunting in Asia, but the market is on track for its biggest weekly loss in a year, with a rapid U.S. harvest and expectations of higher yields weighing on the market.

November soybeans have lost 6.2 percent this week, the biggest weekly loss since September 25. December corn is down 3.7 percent, its biggest weekly fall in more than three months and December wheat has given up 3.1 percent, in its steepest decline since July 29.

Malaysia has yet to cover corn supplies for November and December shipment, while Indonesian importers are likely to remain on the sidelines with supplies from the ongoing domestic corn harvest.

“Indonesian millers are very quiet,” said a second Singapore-based grains trader. “They will be looking for December or January shipment for corn when local supplies diminish.”

South Korea’s largest feedmaker, Nonghyup Feed, has issued an international tender for up to 140,000 tonnes of corn and up to 70,000 tonnes of feed wheat. The tender closes on Monday, Sept. 24.

Earlier this week, Korea Feed Association bought 55,000 tonnes of soybean meal from Archer Daniels Midland Co for arrival by Jan. 10, 2013 in a tender.

Taiwan’s Breakfast Soybean Procurement Association purchased 60,000 tonnes of soybeans likely to be sourced from Argentina in a tender on Thursday.

In Asia’s physical market, U.S. soft white wheat was quoted around $380 a tonne, C&F, while hard red winter wheat was offered at $400 a tonne. Spring wheat with 14 percent protein content was being priced at $425 a tonne.

Australian prime wheat was offered at $395 a tonne, C&F, and Australian standard wheat at $390 a tonne, largely unchanged from last week.

South American corn was being priced around $307-$310 a tonne, down from $325 a week ago.

Corn spot basis bids were steady to lower around the U.S. Midwest on Thursday, with the basis falling to a six-month low at a closely-watched processor in central Illinois, as farmers delivered freshly harvested supplies.

U.S. farmers have started harvesting corn and soybeans at a brisk pace this year, adding seasonal pressure to prices, which jumped to all-time highs this summer as the worst drought in half a century ravaged crops across the U.S. Midwest. (Reporting by Naveen Thukral; Editing by Clarence Fernandez) (naveen.thukral@thomsonreuters.com; +65-6870-3829; Reuters Messaging: naveen.thukral.thomsonreuters.com@reuters.net)

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