CHICAGO (March 13 2003) : Oilseed export tenders, results and marketinformation as reported by the US Department of Agriculture and privateexport sources.

SOYAOIL SALES: An Egyptian firm bought 16,000 tonnes of soyaoil from SouthAmerica for shipment in April, US export trade sources said on Tuesday.

They quoted the price at $523.65 per tonne on a cost-and-freight basis.

The traders also said the Government Trading Corp of Iran bought 20,000tonnes of soyaoil from Brazil at $473 per tonne on a free-on-board basisfor May shipment.

But the traders were unable to confirm market talk that China bought20,000 tonnes of Argentine soyaoil on Tuesday.

MEALS SALE: South Korea's Nonghyup Feed said it bought 4,500 tonnes ofChinese cottonseed meal from G.C. Luckmate at a tender that closed onTuesday.

Nonghyup said it also bought 10,000 tonnes of South-east Asian palm kernelmeal from Toepfer and 6,000 tonnes of South-east Asian palm kernel mealfrom Wilmar.

But no offers on its tender for 12,000 tonnes of South-east Asian wheatbran pellets were made, it added.

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TONNE PRICE(C&F/T) SHIPMENT ARRIVAL/PORT

=============================================================2,000 $146.98 Apr 1 -20 (China) Apr 15/Inchon, Ulsan

2,500 $147.99 May 1 - 20 (China) May 15/Inchon, Ulsan=============================================================NOTE: The above prices excluded $2.50 per tonne of two ports deliverycharges, the officials said.

==============================================================================TONNE PRICE(C&F/T) SHIPMENTARRIVAL/PORT==============================================================================

Palm kernel meal bought from Wilmar

6,000 $63.00 Apr 26-May 15 (SE Asia) May25/Inchon

Palm kernel meal bought from Toepfer

5,000 $63.00 May 25/Kunsan,Ulsan

5,000 $63.00 Jun 1/Kunsan,Ulsan

===============================================================================NOTE: The above prices excluded $1.50 per tonne of two ports deliverycharges, the official said.

SOYAOIL TENDER: The Commodity Credit Corp (CCC) said on Tuesday it willtender on March 20 to buy a total of 8,410 tonnes of US crude degummedsoyabean oil for donation to Kenya and Madagascar.

Shipment period is April 5-20, 2003.

CCC seeks 2,000 tonnes for Madagascar and 6,410 tonnes for Kenya, bothunder Pl-480 Title II financing.

Distribution is by Catholic Relief Services.

CORN/SOYABEAN TENDER: State-owned Taiwan Sugar Corp said on Monday it willtender on March 12 to buy a combo shipment of 23,000 tonnes of US corn and12,000 tonnes of US soyabeans.

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Tonnage Delivery Period

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US Gulf Pacific NW

23,000 (corn) March 13-27 March 27-April 10

12,000 (soya) March 13-27 March 27-April 10

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MARKET TALK AND COMMENT:

World soyabean production will hit a record 194 million tonnes this yearas Argentina grows its biggest crop ever, the US Department of Agricultureforecast on Tuesday.

China will take advantage of strong world supplies of the oilseed,importing a record 16 million tonnes, one million tonnes above USDA'sFebruary estimates.

The United States, the world's largest soyabean producer, is expected toexport 26.13 million tonnes of soyabeans, up from 25.58 million tonnesforecast last month, USDA said.

US shipments to China have been on a strong pace.

Argentina's soyabean crop this year will hit 35 million tonnes, up 1.5million tonnes from a USDA forecast last month.

Brazil, the other major soyabean producer in the world, is expected toproduce 51 million tonnes, unchanged from USDA's estimate last month.

The US corn (maize) stockpile will exceed 1 billion bushels -- 10 percentof use -- when the fall harvest begins, as exports lag because ofcompetition from China and Argentina, the government said on Tuesday.

Soyabean exports were forecast at 960 million bushels, up 20 millionbushels from a February estimate.

USDA lowered its forecast for US corn exports by 75 million bushels, to1.75 billion bushels, and raised its estimate of the corn supply by thesame amount "as increased competition cuts export prospects." China wasforecast to export 12 million tonnes of corn this marketing year, up 1million tonnes from last month's estimate.

China was forecast to import a record 16 million tonnes of soyabeans thisyear, boosting US exports and bolstering prices.

The average farm-gate price for US soyabeans was estimated at $5.40 abushel, the highest in five years.

Drought knifed into US crop production last year and damaged crops inAustralia, Canada and Africa.

Nonetheless, market prices have been tempered by expectations of largecrops in South America and a return to normal weather -- and harvests -this year.

Asian rust fungus was found in an experimental wheat area and in soyafields in Rio Grande do Sul state, Brazil's No 3 soya producer, Embrapa,the government's crop research agency said Tuesday.

"About 3,000 hectares (7,400 acres) of soya in the district of Palmeiradas Missoes showed signs of Asian rust but the extent of the damage isunclear," Passo Fundo-based Embrapa researcher Leila Maria Costamilan toldReuters, adding that samples of soya rust had also been found in Ijuidistrict.

Soya rust, which causes soya plant leaves to fall off prematurely, harmingpod setting and reducing yields, was found on March 6, the day after beingdetected in the wheat field in Passo Fundo.

Harvesting is due to start this month in Rio Grande do Sul.

"As the fungus spreads very easily and quickly by wind farmers mustimmediately spray their soya fields with fungicide," Costamilan said,adding that the fungus reduces soya yields by 30 to 70 percent.

South American soyabean exports to the United States could be feasiblebetween May and July because of low US stocks and a big South Americanharvest, Hamburg-based newsletter Oil World said on Tuesday.

"The tight supply situation will strengthen US prices relative to SouthAmerican origin during the coming months," it said.

"We consider it possible that the premium of US soyabeans will become solarge sometime in May, June and July that importation of South Americansoyabeans into the US will become economically feasible." US soyabeanstocks probably fell to a five-year low of 32.2 million tonnes at the endof February, down 11 percent on the year, it said.

But it might be some time before South American soyabean exports move intogear.

"Recent harvest delays in Brazil may also make it difficult to serve theMarch export commitments in a timely manner," it said.

"Therefore soyabean exports from the US are likely to stay relatively highand above last year's level in March. But a sharp decline will benecessary from April onward.".

Farmers reported good yields with 13 percent of Brazil's record soya cropharvested by March 7, compared with 20 percent last year at this time,grains analysts Celeres/MPrado said on Tuesday.

Celeres/MPrado said harvest operations over the past five years hadreached an average 17 percent of the area planted to soya by the firstweek of March.

Farms had combined 9 percent of the crop by the end of February.

The slower harvest this season is widely attributed to later than normalsowing in the centre-west region due to a dry spell during the earlyplanting period (Sept-Oct) there.

But the late planting has not harmed the health of the crop.

"Overall, the reports from the field continue to show good yields, unlikethe varying results seen during the beginning of the harvest," said atechnician at Celeres/MPrado.

He said producers from nearly all areas were reporting improvement inoutput over last season, even in areas where there had been excessive andsparse rainfall this season.

"Not even Asian soya rust appears to be tarnishing the lustre of thiscrop," said Celeres/MPrado in a report published this week.

"Although the disease has appeared in diverse regions, the losses havebeen small."

Sea trade for panamax dry bulk rates will likely remain subdued this weekafter the benchmark US Gulf to Japan hit fresh seven-year highs, with alleyes focused on a possible war against Iraq, Asia-based brokers said onTuesday.

Modern panamax voyage rates for the US Gulf to Japan were indicated atmore than $29.00 a tonne for shipment in late March/early April, against$28.50 a week earlier, said a senior broker with a major panamax graincargo operator in Tokyo.

The $29.00 level is the highest since October 1995 when an average fixturerate was about $31.00 a tonne, he said.

"Everyone in the market is taking a wait-and-see stance to see whether theUnited States will launch a war (with Iraq) next week," he said.

Panamax rates have risen on higher bunker fuel prices amid fears of aUS-led war with Iraq, a rise in coal demand after unusually cold weatherworld-wide and the start of South American grain exports from late March.

Voyage rates for the US Gulf to South Korea and Taiwan are normally about$0.50-$1.00 a tonne less than those for the US Gulf to Japan, reflectinghigher charges at Japanese ports.

The market has split into two sides.

One side fears a war could disrupt crude oil flows from other producers inthe oil-rich Middle East, sending operating costs higher, while the otheris concerned about bleak demand as rising energy costs could smother analready weak global economy, brokers have said.

Farmers in Argentina, the world's No 3 soya producer, have begunharvesting what the government forecasts will be a record 2002/03 soyacrop, the government said on Tuesday.

Farmers had collected just 2 percent of the 12.6 million hectares sownwith soya by Friday, mainly in the northern province of Chaco.

Most crops in the top three soya provinces were in good shape, though lackof rain threatened yields in some areas, the agriculture department saidin its weekly crop report.

Soya yields ranged from 2 tonnes to around 3 tonnes per hectare in thesouthern sections of No 1 soya producer Cordoba province.

Crops in Rio Cuarto were badly in need of rain.

"In Marcos Juarez, second-crop soya is in good shape, helped by rainsduring the week. The plants are in the seed-filling stage, when the yieldis determined," the report said.

Farmers had collected 17 percent of the corn crop by Friday, 8 percentagepoints more than by the same time last year.

Corn yields ranged from 8 tonnes per hectare in parts of Buenos Airesprovince -- where some crops are in need of rain -- to as high as 14tonnes per hectare in parts of Cordoba.