June 18, 2008

Thailand resumes corn exports as local supply stabilises

Thailand resumes its overseas shipments of corn this week after a 3-week hiatus as the local supply increased.

Traders said Tuesday (June 17, 2008) that the recent development allows exporters to benefit from record corn prices in the global market.

A total of 40,000 tonnes of corn was sold to Malaysia, Indonesia and Vietnam this week for July shipment.

In 2007, Thailand exported more than 90,000 tonnes of corn and 257,500 tonnes in 2006, the Commerce Ministry said.

Luckily the country has an ample supply to export when global prices hit the record high, a Thai trader said.

Traders were prevented from exporting corn in March due to tight domestic supply.

Currently, Indian prices are higher than Thailand's corn as the country's supply was sold out and it has to wait until October when the new crop is due to be harvested, an observer said.

Indian corn prices were around US$280 per tonne on Tuesday, up from US$240 per tonne earlier this year caused by outbreaks of bird flu.