May 30, 2013
 
Export of excess corn to Vietnam lifts Thai corn prices (week ended May 27)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Corn prices saw the most fluctuation this month among other feed crops, after the plunge to THB9.85/kg (US$0.32/kg) during the first two weeks of May, followed by the recovery to the original level at THB10.20/kg (US$0.34/kg) this week.
 
Many feed mills are holding more corn inventories due to price uptrend expectation, while some mills have to export excess corn to neighbouring countries such as Vietnam during the first two weeks of May, resulting in the recovery of local corn prices.
 
Soybean prices decreased, following global prices, due to the decrease in demand from China.
 
Prices of rice by-products such as broken rice, white rice bran and rice bran residue increased due to a lack of rice supply. Rice mills were disappointed in the government's rice pledge scheme that destroyed the country's monetary discipline and increased the country's public debt, as well as the rice industry and their livelihood. Prices of white rice bran and rice bran residue are increased to THB8.90/kg (US$0.30/kg) this week from range of THB7.20-7.90/kg (US$0.24-US$0.26/kg) in April 2013.    
 
 
Market analysis
 
Local corn prices plunged during the first two weeks of May when 350,000 tonnes of wheat were imported by big feed mills due to lower wheat price in the Chicago market. This situation resulted in excess corn supply and lowered corn prices such that some feed mills had to export excess corn-based feed product to neighbouring country.
 
Soybean prices decreased, following global prices, after lower demand from China, the world's biggest importer, due to the current outbreak of Avian Influenza H7N9. However, soymeal demand in Asia is still expected to increase, except for China.
 
Soy export from the United State of America, Brazil and Argentina have decreased from 2011/2012 to 36.7 million tonnes, 36.4 million tonnes and 9.1 million tonnes respectively, while China's demand fell by 2 million tonnes to 59 million tonnes for 2012/13.
 
Wheat and corn are energy-based feed that can interchangeable, although wheat is not produced in Thailand. However, nutrition levels for wheat and corn nutrition are still lower than that of broken rice.
 
During the first and second week of May, lower corn price resulted in corn exporters exporting an excess of 6,000 tonnes of corn-based animal feed to Vietnam. Each month, corn traders export corn seeds to neighbouring countries, pushing up local corn prices to higher levels than previous year.
 

 

PRICE as of  May 20
(in Thai baht/kg)

PRICE as of  May 27
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn 

9.85

10.20

0.35

Cassava roots

2.55

2.55

---

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

538.00

538.00

---

White rice bran

8.70

8.90

0.20

Rice bran residue 

7.40

8.00

0.60

Soybean 

18.65

18.65

 ---

Soybean meal 

18.15

18.40

 0.25

Fishmeal (protein more than 60%)

26.80

26.80

---

US$1=THB 30.15 (May 30, 2013)

 

 


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