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Market Reports

September 19, 2013

Thailand's livestock farmers call for reduced feed price amid corn oversupply (week ended Sep 2)
 
An eFeedLink Exclusive
 
 
Price Summary
 
This week is still within the corn harvest season, with increased supply in the market and local corn prices still decreasing. There are price problems in many areas, particularly in the northern region. Feed grade corn price decreased to THB9.0/kg (US$0.29), from THB9.35/kg (US$0.30/kg) last week.
 
The government has asked corn trader to buy corn with moisture not over 14.5% at THB9.0/kg (US$0.29/kg) from corn farmers and the government will subsidise traders.
 
Soymeal price follows the trend of CBOT price, after delayed harvest in the US. This week, local soymeal price increased to THB18.25/kg (US$0.58/kg) from THB18.15/kg (US$0.57/kg) last week.
 
Trend of paddy rice price is down due to increased release from the government warehouse, which brought down the prices of rice by-products.
 
 
Market analysis
 
This week, various livestock associations have met to discuss lobbying for feed millers to reduce retail price of premix feed after corn prices have been falling for many weeks. This discussion is just an internal meeting among associations for broiler, layer, and swine on Thursday. Next, they will meet with feed mills to find reasonable price of premix feed in 30kg paper bag, which current price is THB450/bag (US$14.28/bag). The group of livestock farmers expects a reasonable price of premix feed to be reduced by THB70-80/bag.
 
In case the price is reduced, it will be officially announced by the Department of Internal Trade, Ministry of Commerce. Department of Internal Trade has increased feed price by 3%-10% since January 2013 for aquatic, broiler and cattle feed.
 
Deputy Minister of Commerce Yanyong Puangrach said as part of the intervention measure this year for corn with moisture not over 14.54%, the guaranteed price is THB9.0/kg (US$0.29/kg). The government has appealed to six feed mills such as CPF, Betagro, Laemthong, Krungthai Feed mill, Lee Feed Mill and Top Feed Mill to increase purchase volume during September to December by 10% - 20% at better price for corn farmers.
 
The Thai feed mill association expects corn consumption this year to be 5.56 million tonnes. But with Saha Farm Group's liquidity issues, the removal of their demand of 800,000–1,000,000 million tonnes, or 20% of the whole country's production leaves a gap to be filled. The remaining corn demand this year will be 4.66 million tonnes and average monthly corn demand is 460,000 tonnes. During this corn harvest season, there will be excess supply of 210,000 tonnes per month in the market.
 

 

PRICE as of  Aug 26
(in Thai baht/kg)

PRICE as of  Sep 2
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn  

9.35

9.00

-0.35

Cassava roots

2.55

2.50

-0.05

White Broken Rice A.1 Super(USD/tonne)

426.00

410.00

-16.00

White rice bran

10.80

10.60

-0.20

Rice bran residue 

9.50

9.50

---

Soybean 

20.15

20.15

 ---

Soybean meal 

18.15

18.25

 0.10

Fishmeal (protein more than 60%)

29.40

28.60

-0.80

US$1=THB 32.15 (Sep 19, 2013)

 

 


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