Megat Junid said the price of domestic rice had risen by 21 per cent while that of imported varieties had increased by 52 per cent. He did not indicate the time frame for the increases. Paddy yield has fallen this year to between 5,000 and 6,000 tonnes a hectare in drought-stricken areas from 8,000, he said. Malaysia produces only 65 per cent of its needs, importingthe restprimarily from Thailand, Vietnam, India, Pakistan and Taiwan.

US spot basis wheat bids down
Weak demand and fresh supplies of cash wheat from government loan forfeitures pushed down spot basis bids for spring and white wheat at elevators across the northern US producer belt on Thursday. "Farmers with maturing loans are saying, `Take it, it's yours,' but nobody wants to buy it from us," said one merchant central Montana after dropping flat price 9 cents. Spring wheat flat price bids at Minneapolis dropped like a stone, down 8-1/2 cents from Wednesday, with Duluth bids down 7-1/2 cents. Portland spot spring wheat was bid 5 cents lower at $4.43. Interior Oregon and Washington bids fell 5-6 cents. A USDA aide told Reuters in Washington on Thursday that wheat loan forfeitures so far this season of 1.5 million bushels were already the highest since the 1988 crop year. About 140 million bushels of wheat remain under 1997 loans.

Tokyo corn futures rally
Tokyo corn futures rallied in thin tradeon Friday, helped by a rebound in the Chicago market overnight and the dollar's gains against the yen, traders said. They said, however, many players remained on the sidelines amid uncertainties over demand from south-east Asian countries and expectations of good crop weather in the US Midwest. Corn futures prices ranged from 90 yen to 150 yen per tonne higher. Benchmark May scored the largest gain of 150 yen to finish at the day's high of 15,650 yen. Estimated volume was a thin 14,974 lots. In Chicago overnight, corn futures closed higher on support from USDA's weekly report on exports and short-covering. At 0700 GMT, the July corn futures contract on the CBOT project A trading system was quoted at $2.39-per bushel, compared with Thursday's Chicago close of $2.39-3/4.

Indonesian palmolein prices fluctuate

Prices of Indonesian palmolein fluctuated on Thursday as trade sources attributed the movement to renewed export activity. The government and producers agreed last week that olein prices shouldnot be more than 4,000 rupiah/kg by the time it reached consumers, meaning ex-factory olein should sell at 3,500 rupiah/kg. But, while some traders still claimed they sold olein at 3,500 rupiah/kg, crude palm oil price were rising on export demand suggesting olein prices were exceeding the set price. "Whatever happens, exporting is attractive despite the tax. I don't believe traders still sell olein at the agreed price levels," said one industry source. At least 21,000 tonnes of crude palm oil CPO and olein left the Belawan port in North Sumatra on Wednesday for India, Singapore and Malaysia.

Spices Board festival in London
As part of its programme to popularise spice-based cuisines and to promote Indian spices, the Spices Board of India is organising a week-long Indian spices food festival in London from June 18. The festival would follow the `Ethnicfood 98' exhibition in Birmingham in the UK, in which the board is participating from June 14 to 16, according to board sources in Kochi. The foodfestival in London is being organised in association with the London's famous Indian restaurants, Malabar Junction and the Sree Krishna South Indian Restaurant. The Malabar Junction is one of London's first upmarket south Indian restaurant. The Sree Krishna South Indian Restaurant also is a famous food joint, drawing huge crowds.

Chile vote likely to support LME copper
The voting on a strike at a major Chilean copper plant is likely to support copper prices on the London Metal Exchange (LME) on Friday, Asian traders said. Copper finished at $1,682 on Thursday, down $23 from Wednesday, but up from the day's low of $1,670. "Players will wait for the result of the voting to take their next move. The market was quiet yesterday, but was supported by the nervousness," said on Singapore-based trader.

Aluminium falls short of target

Aluminium output in the country fell short of target by 4693 tonnes during April, though the actual production of 44536 tonnes was 1321 tonnes higher than theachievement a year ago, official data revealed. Output at Bharat Aluminium (Balco) and National Aluminium Company (Nalco) during April this year was below their actual achievement in the corresponding period of 1997, according to data of non-ferrous metals released by the government. In the case of zinc, actual output stood at 10266 tonnes during the period against the target of 11450 tonnes while lead production touched 3399 tonnes against the target of 3750 tonnes and last year's April output of 3236 tonnes. Gold output in the country rose from 145.56 kg in April last year to 157.96 kg, which was about five kg below the target set by government, an official release in Delhi said.

Caltex 6-month naphtha tender
A six-month term naphtha sell tender issued by Caltex, a shareholder in the Singapore Refining Company (SRC), drew little bidding interest, traders said on Friday. They said the weak regional fundamentals kept bidder was limiting demand and kept bidders at bay. The tender, which closed onWednesday, offered 120,000 to 240,000 barrels of naphtha per month between September 1998 and February 1999, traders said. The naphtha on offer would be sourced from SRC, which is jointly owned by Singpaore Petroleum Co, British Petroleum Co Plc and Caltex, a joint venture between Texaco Inc and Chevron Corp. On Monday, industry sources said Caltex had also issued a tender to sell 150,000-300,000 barrels per month of 0.5 per cent sulphur diesel and 100,000-2000,000 barrels of jet A-1 per month between September 1998 and February 1999.

EPA nod for medfly pesticide use
The US Environmental Protection Agency on Thursday said it approved the agriculture department's use of the insecticide malathion to control Mediterranean fruit fly infestations on Florida's West coast. But, the EPA said it had set strict conditions to restrict the pesticide's use to minimise potential risks to human health and the environment. "We set special restrictions that will enable control of the medfly outbreak while ensuringthat the citizens of Bradenton and Palmetto are protected and informed during this eradication effort," said EPA administrator Carol Browner. Mediterranean fruit flies eat 250 kinds of fruits, vegetables and nuts. They pose a severe threat to Florida's $6 billion a year citrus industry.

NZ Wool Board sets up new units
The New Zealand Wool Board on Friday named the managing directors and boards of directors for its new commercially-focused subsidiary business units. The new companies - Wool Production Technology Ltd (WoolPro) and Wools of New Zealand Ltd - will be fully owned units of the New Zealand Wool Group, which will also carry out the statutory functions of the board. The board said in February it was investigating a newstructure which would separate its funding and statutory functions from its commercially-focused market development and research activities.

Hank yarn prices quote slightly higher
In restricted trading, hank yarn prices quoted slightly higher in the Delhi cottonyarn market on Friday on a fresh demand from handlooms and powerlooms. Demand form neighbouring state markets, mainly Pilgkhua also pushed prices of 4, 6 and 10 counts in the hank yarn section. However, prices of waste yarn, cone yarn and hosiery yarn section were unaltered on little doing.

The volume of business was moderate. Among hank yarns, Hissar and S R Faridabad 4 counts quoted re 1 each up at Rs 247 and Rs 253 per 4.54 kilos. SR Faridabad 6 counts up Rs 2 at Rs 274 while 10 counts at Rs 304 per 4.54 kilos.