February 28, 2013

Thai corn prices soar again after end of second crop (week ended Feb 18)
 
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Price Summary
 
The end of the second corn crop caused its price to soar again, following lower corn supply in the market. Local corn price is increased to THB10.30/kg (US$0.34/kg) from THB10.15/kg (US$0.33/kg).
 
Rice by-product such as white rice bran and rice bran residue was still lacking in paddy rice supply to rice mills until the Thai rice mill association asked the government for rice auction from government warehouse, as rice farmers are willing to sell their rice only to government due to the high pledge price for paddy rice. After the increase in supply of paddy rice, supply of rice by-products will increase in the feed market.
 
New off-season rice crop will harvest during April-May, amounting 4.6 million tonnes or 50-63% of whole off-season production, expected to total 9.167 million tonnes.    
 
Market analysis
 
Manas Kijprasert, president of the Thai Rice Mills Association, said the association has asked the ministry of commerce for the right to auction off paddy rice in government warehouse as some of the rice millers who produce white rice in 5-kilogramme bags, lack paddy rice as raw material. Most rice farmers are willing to sell their rice only to the government, due to the high pledged price for paddy rice price at THB15,000 /tonne (US$500/kg). This is the main cause for the present situation of lack of rice-by-product for the Thai animal feed industry.

For Thai cassava production in 2013, the expected crop cultivation area is 3.16 acres, totalling production of 27.55 million tonnes, while February 2013 production is about 5.19 million tonnes, or 18.85% of the whole year's production for this year. Recently, cassava production from October to December 2012 was about 7.16 million tonnes.

One of the key price factors of Thai livestock is the price of soybean in international markets such as CBOT. Soybean price is supported due to the current labour protest at Brazil's sea port that resulted in delay in delivery: while at the US outlook forum, it was  predicted that the next season of US soybean production will supply 3.405 billion bushels or 92.7 million tonnes, a 13% increase from 2012/2013.
 

 

PRICE as of  Feb 11
(in Thai baht/kg)

PRICE as of  Feb 18
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn  

10.15

10.30

0.15

Cassava roots

2.25

2.25

---

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

562.00

562.00

---

White rice bran

10.20

10.00

-0.20

Rice bran residue 

9.00

9.00

---

Soybean 

19.65

19.65

 ---

Soybean meal 

19.15

19.15

 ---

Fishmeal (protein more than 60%)

31.30

31.30

---

US$1=THB 29.85 (Feb 20, 2013)

 


 
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