July 6, 2005

 

Thai Corn Market Fortnightly: Prices stable in stagnating demand; exports seen slow

 

An eFeedLink exclusive report

 

 

Domestic prices of Thai corn were unchanged this week compared with last week due to ample stock at home, analysts said.

 

Corn with moisture content not exceeding 15 percent traded at THB5.50/kg in markets in the north-eastern province of Nakhon Ratchasima, an important area for corn trading. This price was unchanged from last week.

 

"Demand for corn is stagnant as most animal feed mills seem to already have sufficient corn stocks," an industry participant said. Domestic corn prices are expected to be stable in the coming week. Prices may decline, however, when the next corn harvest begins in August.

 

This year's harvest is expected to start around a month later than usual; Thai corn harvests normally begin in July. This is because many farmers have abandoned the corn crop in the early state of cultivation and turned instead to cassava, which yields higher prices, industry participants said.

 

Corn exports have been slowing down this week because buyers such as Malaysia have switched to buying from other countries that offer cheaper corn. Also, corn supplies available for exports have been limited.

 

"We haven't done any export business for a while due to a lack of supplies," said a trader at an international trading firm.

 

Thai corn exports averaged US$143/tonne, FOB, down from US$144/tonne a week ago, according to data from the Ministry of Agriculture and Cooperatives of Thailand.  

 

 

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