"Corn prices are softer mainly because of currency adjustment. Futures prices had also gone down," said a trader with a large Malaysian flour mill.

The central bank, Bank Negara Malaysia, last Wednesday fixed the ringgit at 3.80 per dollar. This compared with around 4.20 earlier last week.

Traders said low supplies, however, helped limit the price fall. Corn stocks at Port Klang, Malaysia's main Port, were currently estimated at 20,000 tonnes. "Demand is pretty stable but supplies will soon improve with the arrival of Argentine and Chinese corn totalling 30,000 to 40,000 tonnes in the middle of this month," a trader said.

"This could put some downward pressure on prices," he said.

Traders said Indonesian corn continued to arrive in Malaysia but in smaller quantities.

"Arrival of Indonesian corn is getting less asprices are not that attractive anymore because of the stronger rupiah," said the flour mill trader.

On Tuesday, traders quoted Chinese/Argentine corn out of Port Klang at 530-540 ringgit a tonne, ex-warehouse price, compared with 540 ringgit a week ago.

Indonesian corn was quoted at around 520 ringgit a tonne.

Local grade soymeal out of Port Klang was trading around 815-820 ringgit a tonne, while imported soymeal was at 780-785 ringgit, traders said.