September 25, 2014
Thailand government steps in as feed millers ditch corn in favour of wheat (week ended Sep 15, 2014)
An eFeedLink Exclusive
Price summary
Feed millers in Thailand have started buying only better quality cornin a bid to export more corn by-products to neighbouring countries.
They havealso cut down their corn purchasesin line witha plan to import more wheat (at least 10 shipments) to replace corn as main ingredient in animal feeds during the second half of this year.
In the light of these developments, the average selling price of corn in the country dropped to THB8.70/kg (US$0.27/kg) from THB9.30/kg (US$0.29/kg) last week.
Soymeal price is stable at THB20.70/kg (US$0.65/kg) this week while those of rice by-products arelower, with the white rice bran priced atTHB9.00/kg (US$0.28/kg) from THB9.20/kg (US$0.29/kg) last week and the rice bran residue at THB9.10/kg (US$0.28 kg) from THB9.20/kg (US$0.29 kg) last week.
The market price of fishmeal with 60% protein is unchanged at THB20.70/kg (US$0.625/kg),although Charoen Pokphand Food's subsidised buying price is unchanged at THB37.70/kg(US$1.18/kg).
Market analysis
To keep the price of corn from going down further, the Ministry of Commerce'sDepartment of Internal Tradeoffers interest payment subsidy of 3% per annum to livestock farmers who keep corn inventory good enough for the next 6 months.
A form of subsidy is also being offered to farmers who buy their own corn dryers, since a big bulk of this month's harvests have high moisture content due to recent rains.
Thailand's current bumper corn harvests, along with record drops inglobal corn prices, have caused so much pressure on domestic corn prices, leaving the government no choice but to intervene to help farmers from going under.
Another help the government has been doing is to requirelayer cooperativesto have stock inventories of not less than 15,000tonnes of corn a month.
From September to November, corn production is expected to be about 58% of the total annual output of around 4.7 million tonnes.
|
FEED GRAINS |
PRICE as of Sep 8 |
PRICE as of Sep 15 |
Changes |
|
Corn |
9.30 |
8.70 |
-0.60 |
|
Cassava roots |
2.20 |
2.20 |
--- |
|
White Broken Rice A.1 Super(USD/tonne) |
333.00 |
332.00 |
-1.00 |
|
White rice bran |
9.20 |
9.00 |
-0.20 |
|
Rice bran residue |
9.20 |
9.10 |
-0.10 |
|
Soybean |
24.00 |
24.00 |
|
|
Soybean meal |
20.70 |
20.70 |
|
|
Fishmeal(protein more than 60%) |
29.70 |
29.70 |
--- |
|
US$1=THB 32.22 (Sep 25, 2014) | |||
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