July 28, 2005

 

Thai Corn Market: Prices decline slightly on new harvest; July stocks lower (Jul 28, 2005) 

 

An eFeedLink exclusive report

 

 

Domestic prices of Thai corn declined in the week ending July 28 as arrivals of fresh corn supplies put pressure on prices, local corn merchants said.

 

Despite new supplies coming in the market, these additional amounts have been small, limiting the fall in prices. "Also, new supplies have been readily absorbed by demand from feed mills," a silo owner revealed.

 

This year's corn harvest was delayed for about a month, starting in July instead of June. Subsequently, estimates for July corn production have been lowered to 30,000 tonnes, from an average of 100,000 tonnes in previous years, the silo owner said.

 

The market has viewed the surge in supplies as "well-timed", coinciding with current demand, industry sources said.

 

Industry estimates put domestic stocks ending end-July at 250,000 tonnes, down from 300,000-400,000 tonnes in mid-July. 

 

In Bangkok, ex-feed mill corn prices stood at THB5.47-5.48/kg, compared with THB5.53-5.55/kg in the previous week, according to the Department of Internal Trade.

 

For markets outside Bangkok, like those in Saraburi province 107km north of Bangkok, corn prices stood at THB5.43-5.53/kg.

 

Export prices of Thai corn ended at about US$135/tonne, FOB, said a corn exporter.

 

Domestic corn prices are expected to weaken in the coming weeks as supplies are expected to increase with harvesting underway, industry sources said.

 

 

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