Thailand bought 50,000 tonnes of US soft and spring wheat this week, while Malaysia was active in the corn market, taking Brazilian and Indian cargoes. Thailand purchased US soft white wheat at around $250 a tonne, including cost and freight, hard red winter wheat at $270 a tonne and dark northern spring wheat at $335 a tonne for shipment in March.

"There is some activity in the market as global wheat prices have weakened," said a Singapore-based trader with a global trading firm. "Thailand has bought US wheat and Australians have sold some cargoes." Although US wheat sales to Asia have been declining, traders said Thai mills pay a premium for their preference for US wheat. "They don't mind paying $50 a tonne premium for US wheat as they are used to the quality," the trader said. Australia sold some 70,000 tonnes of Australian prime wheat to mills in Southeast Asia at around $260 a tonne, C&F.

Copyright Reuters, 2010