Poultry
xClose

Loading ...
Swine
xClose

Loading ...
Dairy & Ruminant
xClose

Loading ...
Aquaculture
xClose

Loading ...
Feed
xClose

Loading ...
Animal Health
xClose

Loading ...
Undefined
 
September 24, 2013

Thailand's corn price still plunging with CBOT price trend. (week ended September 16)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Corn supply in the market increased this week due to the local corn harvesting season. The corn downtrend in Chicago further depressed local corn prices amid excess supply of about 210,000 tonnes per month.
 
Early harvesting and the rainy season increases the  moisture in corn to over 14.5%, which affects selling price for farmers, which was originally guaranteed at THB9.0/kg (US$0.285) for corn with moisture not over 14.5% in some areas.
 
Price of feed-grade corn continues to decrease to THB8.7/kg (US$0.27/kg), while the government urges big feed mills to increase amount of corn purchased from farmers.

Soymeal was trading at a wide range of THB17.50-18.50/kg (US$0.55-0.59/kg) but official purchase price is THB18.50/kg. Soybean price trend is also falling during the harvest period in US.
 
Price of rice by-products also decreased due to more paddy rice release to the market.
 
 
Market analysis
 
Yanyong Phuangrach, Deputy Minister of Commerce said the Cabinet's resolution approved THB1,907.25 million or US$60.5 million for intervention in the next corn season (2013/2014) in corn quality improvement, subsidy for interest payment, management expenditure and purchase at guaranteed price.
 
Cooperation from big feed mills such as CPF, Betagro, Laemthong, Krungthai Feed Mill and Top Feed Mill will extend to December 2013 and these companies will purchase corn at above market price to help corn farmers. Criteria of the Thai government's subsidy scheme is being adjusted to help farmers after the lowest price of low grade corn dipped to THB4.50-THB5.00 (US$0.14 – THB0.16) in some areas in the northern region. Farmers have gathered to appeal for support from the government on several occasions this year.
     
The main factors that affect local corn price are the reduction of chicken production due to the financial liquidity problem of Saha farm, which reduced domestic corn demand; and the misstep in the Thai government's policy during the first quarter of this year, which resulted in the approval of excessive volume of corn import from neighbouring countries such as Laos and Cambodia.
 
Higher export demand in chicken products during 4th quarter may support corn demand in chicken production, but this may merely maintain the current price.
 

 

PRICE as of  Sep 9
(in Thai baht/kg)

PRICE as of  Sep 16
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn 

8.70

8.70

---

Cassava roots

2.50

2.50

---

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

410.00

401.00

-9.00

White rice bran

9.90

9.50

-0.40

Rice bran residue 

9.30

9.00

-0.30

Soybean 

20.15

20.15

---

Soybean meal 

19.00

18.50

-0.50

Fishmeal (protein more than 60%)

29.60

28.60

-1.00

US$1=THB 31.20 (September 20, 2013)

 

 


All rights reserved. No part of the report may be reproduced without permission from eFeedLink.

Share this article on FacebookShare this article on TwitterPrint this articleForward this article
Previous
My eFeedLink last read