April 7, 2004

 

 

Thailand Feed Grains Demand Set To Rise 

 

Feed demand in Thailand is set to rise as the country prepares to declare itself free from bird flu, traders said on Wednesday.

 

The Thai feed industry is looking to import a few cargoes of Argentine soybeans while local grain exporters have also been holding back corn sales to overseas, expecting a perk up in demand, they said.

 

Thai buyers were keen to buy some soybeans for May shipments, traders said. They were receiving offers at around $420 a ton C&F for new crop Argentine soybeans.

 

"The domestic supply situation is very tight. We will have to buy some for prompt shipment since feed demand is slowly recovering," said one Thai trader.

 

Thailand's Deputy Agriculture Minister Newin Chidchob said on Monday the government would likely declare this Friday that the bird flu outbreak was over. But farmers in affected areas would have to wait 69 days after the declaration to restock farms.

 

Thailand, the world's fourth-largest poultry producer, has culled about 35 million chickens in the battle against the H5N1 avian influenza strain.

 

Thailand was also eyeing a few soymeal cargoes from India, traders said. Offers were coming in at around $390 a ton C&F.

 

"There is no other alternative," said one trader. "Domestic meal supplies are not adequate."

 

And anticipating a rise in domestic demand, Thai corn traders were holding back overseas sales, hoping to get good prices in the local market.

 

"Many corn cargoes from Thailand has already moved out. Whatever is left, traders are waiting to see the domestic demand situation before they sell overseas," said another trader.

 

The poultry sector in Thailand accounts for about 55 percent of commercial feed consumption. Trade officials estimate Thailand's feed demand could fall to around nine million tons this year due to the bird flu outbreak, from last year's 11 million tons.