September 1, 2005

 

Thai Corn Market: Prices up on feed mills' demand; government intervention expected (week ending Sept 1)

 

An eFeedLink exclusive report

 

 

Thai corn's domestic prices were higher in the week ending Sept 1 as a result of local feed mills' demand, local industry players said.

 

Due to concerns that drought will greatly lower total corn production this year, many feed mills have adjusted buying prices to attract supplies from farmers, a local merchant said.

 

Thailand's Ministry of Agriculture and Cooperatives (MAC) also predicted corn production in 2005 at about 4 million tonnes lower from the 4.29 million tonnes last year.

 

In Bangkok, wholesale ex-feed mill corn prices stood at THB5.52-5.55/kg, a rise from THB5.43-5.45/kg the previous week, according to data from the Department of Internal Trade (DIT) at the Commerce Ministry.

 

Prices of corn with moisture content of less than 15 percent at Ayudhya province markets were also higher at THB5.50/kg, slightly up from THB5.46/kg the previous week, data from the DIT showed.

 

Corn harvesting season had started in August and is now entering into full swing this month. Meanwhile, corn demand is still robust as farming activities in the livestock sector is increasing following the easing of bird flu concerns, industry players observed.

 

Export price of Thai corn was about US$140/tonne FOB the previous week, rather similar from prices the week earlier, according to MAC.

 

The Thai government is also expected to intervene in the domestic corn market by buying corn from farmers to boost corn market prices, which are expected to weaken when the harvest is in full swing from September through November.

 

Farmers hoped that the government would buy corn with 14.5 percent moisture content at THB5.50/kg. However, the government has yet to make any decision on the intervention price.

 

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