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INTERVIEW-Asian buyers wary of US wheat deals after attacks

INTERVIEW-Asian buyers wary of US wheat deals after attacks


     SINGAPORE, Sept 17 (Reuters) - Many Asian wheat buyers are refraining from sealing fresh U.S. deals after last week's deadly plane attacks, but U.S. exporters are making all out efforts to avoid shipment delays, a senior trade official said on Monday.

     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

lower, with December down 9-   at $2.72-   per bushel.
Sell-stops were hit in late dealings amid fund selling, as December broke support at $2.78 and again at $2.75.

     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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