* Around 4-9 Aug/Sept Panamax cargoes cancelled or deferred
* Buyers unlikely to cancel more shipments as global prices rise
By Naveen Thukral
SINGAPORE, Aug 26 (Reuters) - Corn buyers in Vietnam, one of the world's fastest growing feed grain markets, are postponing purchases and have cancelled some cargoes amid oversupply of the grain, two trade sources said.
Importers had booked close to three million tonnes of mainly South American corn for arrival in August and September, hoping for a recovery in demand.
"They overbought but the demand remained weak," said one of the sources who is a Singapore-based trader at an international trading company.
"Now they are looking at deferring purchases for later months, whenever possible, November or even December."
Estimates by traders on cargoes cancelled or arrivals pushed to later months range from four to nine Panamax-sized vessels, each with a capacity of around 60,000 tonnes.
Vietnam, which has seen corn imports climb around 10-fold in a decade, is expected to take 11.5 million tonnes in 2020/21, according to U.S. Department of Agriculture (USDA) data.
Buyers are mutually agreeing on terms and conditions with sellers to cancel or postpone the arrival of vessels carrying mainly Brazilian and Argentinean corn, said the two sources, who regularly sell corn to buyers in Southeast Asia.
"Honestly, more people on the supplier side are willing to buy back as prices have risen," said the second source.
"Going forward, we don't expect more importers to cancel deals since prices are rising."
The trade sources were not willing to be quoted as they are not authorised to speak to media.
The benchmark Chicago Board of Trade corn futures have climbed around 4% this week, gaining for a third consecutive week as adverse weather hits U.S. crops.
South American corn to Vietnam is now quoted at $217 a tonne for October shipments, compared with around $200 a tonne a few weeks ago.
The USDA's good-to-excellent ratings on Monday for U.S. corn and soybean crops came in below analyst expectations, falling further than an expected 2 percentage points each as conditions in the Midwest deteriorated due to hot and dry weather. (Reporting by Naveen Thukral; Editing by Tom Hogue)
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