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As nervous long liquidation hit wheat futures at the
Chicago Board of Trade (CBOT) on Friday, Asian buyers, unsure
of market direction, are holding back planned tenders, said
Mark Samson, vice-president for South Asia of the U.S. Wheat
Associates.
"The recent line up of import tenders are limited and
buyers are taking a wait-and-see attitude," Samson told Reuters
in a telephone interview. "Certainly, there were no new reports
during the weekend of increased imports or purchasing
activity."
Probably Taiwan is the only country in Asia which has
struck fresh contracts for U.S. wheat since the attack. The
Taiwan Flour Mills Association on Friday clinched a deal to buy
86,700 tonnes of U.S. wheat in two shipments for November and
December.
South Korea, which tendered to buy 22,600 tonnes of U.S.
No. 1 wheat, passed on the tender due to a lack of offers. Last
Thursday, Japan's Food Agency cancelled its weekly tender to
buy wheat and barley for November shipment but is expected to
resume tendering this coming Thursday.
Samson said it was difficult to anticipate exactly to what
extent wheat shipments to Asia, that were in the pipeline,
would be delayed. But he added: "Hopefully, it won't be very
long. I would think it is business as usual starting this
week."
On Friday, CBOT wheat closed one to 9- cents per bushel
Many prospective buyers of U.S. wheat from across the world
-- including trade representatives from Taiwan -- have
postponed visits to the United States after the terror attacks.
"We are still awaiting directions from our head office
regarding many of our ongoing programmes (tour plans). But I
think within a week or so we will be somewhat back in normal
business -- but much would depend on flights," Samson said.
MIDDLE EAST EYED
Samson said Asia's buying interest was minimal as the trade
was keeping an eye on any possible retaliation by the United
States after hijacked planes crashed into the World Trade
Center in New York and the Pentagon in Washington last Tuesday.
"The concern of buyers is mostly towards the Middle East.
What is the United States going to do? What is going to be the
breadth of their retaliation?" Samson added.
U.S. wheat shipments to the Middle East rose 400,000 tonnes
to 5.8 million tonnes in the 2000/2001 marketing year with
Egypt being the leading buyer, taking 4.7 million. Other buyers
were Yemen, United Arab Emirates, Lebanon and Jordan.
Fearful Afghans are fleeing the country -- many of them to
neighbouring Pakistan -- as Afghanistan's hardline Taliban
rulers have vowed to wage a holy war against anyone helping
Washington launch attacks on them.
"Given the press reports of mass exodus of Afghans to the
border regions in Pakistan, certainly that would put more
pressure on domestic consumption of wheat in Pakistan," Samson
said.
"I wonder if they would now look at their efforts to export
or look at the more humanitarian issue of feeding those people
coming from across the border," he added.
Pakistan is aiming to export about 800,000 tonnes of wheat
this year with a sharp eye on the bulging Middle East market.
It exported 150,000 tonnes of subsidised wheat to Afghanistan
between November 2000 and March 2001.
Asked if uncertainties surrounding wheat shipments from the
United States would only help competitors such as Australia to
boost market share in the region, Samson said: "I am sure they
will."
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