TOKYO (March 11 2003) : East Asian importers will likely keep a highprofile in the grain and oilseed market this week, with some putting offmaking deals until the last minute in a bid to avoid higher shippingcosts.

Voyage rates for the benchmark US Gulf to Japan for shipment in lateMarch/early April were indicated at about $30 a tonne, the highest levelsince October 1995, on higher fuel prices amid fears that with Iraq isnear, traders said on Monday.

"There will be some last-ditch corn deals for nearby shipment after theyhave delayed the deals on hopes for lower freight costs," said a traderwith a major Japanese trading house.

Japan was believed to have covered about 60 percent or 2.4 million tonnesof its corn needs for the April to June period by the end of last week, hesaid.

Another Tokyo trader said higher freight rates for corn from the UnitedStates or South America might lead some Japanese buyers to buy cheaperChinese corn instead.

Shipping costs from the US Gulf stayed at about $30 a tonne and those fromSouth America were $34- $35, but freight rates from China were littlechanged at $12- $13, he said.

In the other regional market, Taiwan's Members Feed Industry Group willtender on Tuesday for 56,000 tonnes of US or Argentine corn for Aprilshipment, Taipei traders said.

State-owned Taiwan Sugar Corp said it would tender on Wednesday for acombined cargo of 23,000 tonnes of US corn and 12,000 tonnes of USsoyabeans for shipment between late March and early April.

S.KOREAN SOYABEAN DEALS: Some importers fear a war could disrupt crude oilflows from producers in the oil-rich Middle East, sending import costshigher, while others are concerned about bleak demand as rising energycosts could smother an already weak global economy.

The Korea Corn Processing Industry Association (KOCOPIA) was expected toseek corn for food production for July and August arrivals, Seoul traderssaid.

"Before a possible war with Iraq occurs, KOCOPIA is trying to tender tobuy corn," a Seoul trader said.

In the oilseed market, soyabean buying in Japan and Taiwan is expected toremain subdued, but Korea is likely to pick up at least 150,000 tonnes ofedible soyabeans and some meals for feed production.

An official with South Korea's state-run Agricultural Fishery MarketingCorp said it plans this week to issue a tender to buy more than 150,000tonnes of edible soyabeans for delivery from September to 2004.

South Korea's Nonghyup Feed Inc has issued tenders to buy 12,000 tonnes ofSouth-east Asian wheat bran pellet, 10,000 tonnes of South-east Asian palmkernel meal and 4,500 tonnes of Chinese cottonseed meal on Tuesday.

For feed production, the Feed Buying Group is mulling buying two lots of50,000-55,000 tonnes of soyameal for arrival on May 20 and June 5 at theport of Inchon, Seoul traders said.

They said the Korea Feed Association's regional members in Pusan (PusanKFA) and the Major Feedmill Group were also jointly seeking about 50,000tonnes of soyameal for arrival on May 25 at the ports of Ulsan andKunsan.-Reuters