July 21, 2005

Thai Soymeal Market: Prices up slightly on low harvest; high world prices to dampen imports (Jul 20, 2005)

An eFeedLink exclusive report

Thailand's domestic soymeal prices were up slightly in the week ending Jul 20, as a poor soybean harvest was seen to limit supplies, feed users and producers said.

"With the current crop harvest that began in March coming to an end, supply is quite low now," a local feed user said. "The next harvest of new crops won't start till August or September," he added.

Prices of soymeal produced from Thai soybeans now stand at THB12.30-12.60/kg, a drop from about THB12.30-12.40/kg from the previous week.

For soymeal produced from imported soybean, prices have also risen to about THB12.40/kg for the week in review. This was up from THB11.90 in the previous week, reflecting rising soybean prices worldwide, said a feed producer.

Higher global prices have slowed imports of soymeal. As global prices are expected to rise further, soymeal users are likely to continue delaying imports.

"We won't be stocking up as cost is high. Instead, we prefer buying to fulfill short-term needs," the feed producer said.

The country's new round of bird flu is unlikely to affect soymeal use significantly, as the current outbreak is confined to small areas. But its reoccurrence might have a psychological effect that may delay soymeal imports in the short term, the producer added.

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