June 17, 2009

Thailand has sold 20,000 tonnes of corn to Malaysia for July shipment, traders said.

The corn were sold at about US$210 per tonne free on board (FOB) and all were sold to feedstuff producers, said a trader a major Thai corn exporting firm.

Traders said they did not commit to large shipments due to concerns of tight supply as most of the current 2008-09 crop was in government stocks.

The government was believed to be holding nearly one million tonnes of intervention corn, but the cabinet delayed sales of the stock last month citing low prices and fear of losses, resulting in tight supply.

But supply is expected to increase sharply in August when the harvesting of 2009-10 corn starts.

Thailand's Agriculture Ministry estimated that the country will produce about 4.2 million tonnes of corn in the 2009-10 crop.

Another trader said they expect domestic prices to ease so larger sales could be done in August.

Domestic corn prices were quoted at THB7.33 per kg, down from THB8 per kg at early June, traders said.

Between January to April, Thailand sold 103,944 tonnes of corn, according to Ministry of Commerce data.

US$1 = THB 34.1822 (Jun 17)