February 19, 2009
Malaysia to import more corn in 2008-09
The US Department of Agriculture reports that Malaysia's outlook for 2008-09 is bright for corn imports. Demand for feed corn is expected to increase as retail prices for pork and broilers continue to improve in 2009. Imports of wheat are expected to drop slightly in 2008-09 as importers work down on stocks. In 2009, rice imports could reach 930 thousand tonnes to meet the increase in domestic consumption. Thailand and Vietnam continue to be the major rice suppliers to Malaysia.
The small growth in the Malaysian economy 2008 and the drop in fuel prices should sustain increased demand for wheat-based products. Corn consumption is expected to grow as the confidence in consuming pork has returned after a scare of the usage of beta agonists in pig feed. As domestic rice output is expected to show a small increase, self-sufficiency in rice should be about 64 percent.
The best prospect for US grain sales is in the hard-wheat sector. With an expected improvement in Canadian hard wheat output, US market share is expected to decline to 8 percent in 2008-09. As for corn, US will face strong competition from India, Brazil and Argentina, and will be relegated to a residual supplier. Historically, the US has been an insignificant player in the Malaysian rice market.
