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November 24, 2011
 
Thai Feed Weekly:  Thailand looks to Laos as local corn prices spike (week ended Nov 21)
 
An eFeedLink Exclusive      
 
 
Price Summary
 
The price of local corn spiked by about 5% this week, going beyond THB10/kg for the first in five months, as Thailand's livestock and feed productions start going back to normal. Greater demand for corn amid dwindling inventories is driving feed millers to look eastward, specifically Laos and Cambodia, for critical supply.
 
Severe flooding in Bangkok and about 30 other provinces during the last two months derailed the operations of hundreds of livestock farms and feed factories. It is also estimated to have destroyed over two million hectares of croplands, including those planted to rice, corn and cassava.
 
Prices of rice by-products, such as rice bran and bran residue, also surged due to an anticipated big shortfall in local rice production in the aftermath of the flood. However, the export price of broken rice, a major Thai feed ingredient like rice bran and bran residue, softened slightly on lower demand.
 
 
Market analysis
 
The Thai Office of Agricultural Economics (OAE) said this week Thailand's corn imports from Laos in January to October reached 138,498 tonnes, 37% more than the 101,215 tonnes it imported during the same period last year.
 
The OEA expects Thai feed millers to further increase their imports from Laos to meet their growing corn requirements. Feed industry leaders expect domestic corn output to drop 20-30% this year as a result of the widespread flooding. They also see prices of corn, soymeal, cassava and rice by-products going up by at least 10% in a month or two.
 
The OEA, however, warns Laotian supply could also be limited due to an anticipated 5% drop in its 2011 corn output.
 
Due to severe drought in the country last year, it said, about 4% of Laotian corn farmers have shifted to sugarcane and cassava, which are more drought tolerant. The OEA estimates Lao corn production this year to be around 375,850 tonnes, down 5% from last year's.
 
Pornsilp Pacharintanakul, president of the Thai Feed Mill Association, has called on the Ministry of Commerce to allow feed makers to immediately import at least 160,000 tonnes of corn to prevent a feed crisis. 
 
He said Thailand's corn output this year could be one million tonnes less than last year's.
 

 

PRICE as of  November 14
(in Thai baht/kg)

PRICE as of  November 21
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn (Delivered to feed factory)

9.50-9.70

9.90-10.10

+0.40

Cassava

2.45-3.00

2.45-3.00

--

White Broken Rice A.1 Super (US$/tonne)

565.00

563.00

-2.00

White rice bran

10.30-10.80

10.80-11.00

+0.20-0.50

Rice bran residue 

8.50-9.20

9.20-9.50

 +(0.10-0.30)

Soy

11.60-14.45

11.60-14.45

--

Soymeal (imported)

15.50

15.50

--

Soymeal (local)

15.30-15.50

15.05-15.30

-0.20-0.25

Fishmeal (shrimp grade)

25.00-37.98

25.00-37.98

--

US$1=THB 31.37 (November 24, 2011)

 

 


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