Surprise rally catches Asian feed millers short

Singapore

ASIAN feed millers have missed the boat on multi-year-low corn and soymeal prices after a surprise rally in the futures market over the past few weeks, leaving them with hefty costs even as global supplies hit record highs.

Several millers in Asia's top importers, including Indonesia, Vietnam and Thailand, have been ordering cargoes over the last few months by locking in premiums they must pay over futures, but leaving that futures level to be fixed later.

US soymeal futures jumped more than 30 per cent in October, while corn gained almost 18 per cent, with markets ignited by fund buying, logistical bottlenecks and harvest delays due to wet weather in the United States. "A lot of buyers in Asia have bought premium so they have the physical goods, but of course they haven't priced their futures," said a Singapore-based trader who sells feed grain cargoes in Asia. "They will have …