PHUKET, Thailand, Aug 29 (Reuters) - Thai feed mills have bought up to 1 million tonnes of soymeal in recent deals, while Vietnam is in the market to cover some 200,000 tonnes, traders said, as Asian buyers resume purchases after staying away for more than two months.
Asian feed grain importers have not been active in the market since June as benchmark Chicago corn and soybean futures started climbing, fired up by a devastating drought that has scorched crops across the U.S. grain belt.
India has signed its first new-crop soymeal deal with a sale of 25,000 tonnes to Europe, three traders told Reuters on the sidelines of a regional grains conference in Phuket.
While Thai mills paid $30 to $50 a tonne premium over Chicago Board of Trade futures for South American cargoes, Indian soymeal was sold at $610 a tonne, free alongside ship.
"Initially some big players started buying soymeal in private tenders which triggered purchases by smaller mills as they didn’t want to be left behind," said one of the traders who works at an international trading company.
"The demand seems to be picking up and we expect more deals in the coming weeks."
Taiwan bought 180,000 tonnes of U.S. and South American soybeans after purchasing a similar volume last week, traders said. The Philippines booked more than 300,000 tonnes of soymeal from the United States last week, the added.
Most Thai deals have been signed in the last two weeks.
Asian buyers are likely to sign more deals with monsoon rains improving the outlook for India's soybean crop and forecasts of a record-large output in Brazil next year as all-time high prices encourage farmers to plant more.
"It is a good time to lock in some supplies now as everyone is estimating good production in India and a record-high output in Brazil," said another trader. "Any problem with these crops will add fuel to the rally."
U.S. corn futures CZ2 have climbed 52 percent since the beginning of June, while soybeans SX2 have jumped nearly 36 percent as the worst drought in 56 years curbs yields in the United States, the world's top exporter.
Wheat Wc1 has surged about 33 percent with a Black Sea drought and poor rains in Australia adding to supply woes.
VIETNAM, INDONESIA TO SEEK SOYMEAL
Vietnam is expected to book some 200,000 tonnes of soymeal for November and December arrival, while Indonesia is open for around 100,000 tonnes for the fourth quarter shipment.
"We expect Vietnam to buy Indian cargoes but it all depends on the prices," the third trader said. "Indian prices have started moving higher since the deal to ship soymeal to Europe and if it keeps going up, the demand will shift to South America," the trader said on the sidelines of the conference.
The 9th Southeast Asia-U.S. Agricultural Cooperators Conference -- organised by lobby groups the American Soybean Association International Marketing, the U.S. Grains Council and the U.S. Wheat Associates -- brings together U.S. exporters and Asian buyers.
Indian soymeal prices have risen to around $645 a tonne, free on board, compared with $690 a tonne, including cost and freight, being offered for South American cargoes.
This summer's historic drought has inflicted more damage to corn and soybean crops around the U.S. Midwest than the government is predicting, the Pro Farmer newsletter said last week after a tour of the grain belt.
It estimated U.S. corn production at 10.478 billion bushels, based on a yield of 120.25 bushels per acre. That compares with the U.S. Department of Agriculture's (USDA) latest forecast of a 10.779 billion bushel crop on a yield of 123.4 bushels per acre.
Soybean production was seen at 2.60 billion bushels on a yield of 34.8 bushels per acre. Earlier this month, the USDA pegged the soybean harvest at 2.692 billion bushels and yield at 36.1 bushels per acre.
