September 9, 2009

Thailand may export nearly one million tonnes of corn within the next six months as a bumper crop produces a surplus and the government moves to sell its old crop stockpiles, according to traders on Tuesday (Sept 8).

Thailand is expected to produce about 4.2 million tonnes of corn from the current harvest, and another 400,000 tonnes from the January crop.

The country needs only four million tonnes for domestic consumption, and the rest can be exported to Asian countries, said a Thai exporter, who added that the corn quality looks good and should meet importers' standards.

The government is also tying to sell one million tonnes from its reserves, of which 30-40 percent was now of low quality because high humidity had caused fungal problems.

About 500,000 tonnes of the old crop will be okay for exports, said an executive with an international trading firm.

Malaysia, which is Southeast Asia's biggest corn importer, and Vietnam, are likely to snap up cargoes from Thailand, given India's absence from the market.

Thailand has sold about 100,000 tonnes of corn to Malaysia and Vietnam in the past one month at around US$205 a tonne, including cost and freight.

Corn supplies from India have dried up after the government withdrew a five percent export incentive and poor monsoon rains look likely to reduce the surplus available for exports.