August 1, 2014

Thai corn price soar despite completion of seeding of new crop (week ended Jul 7, 2014)
 
An eFeedLink Exclusive
 
 
Price summary
 
Seeding of new corn crop across Thailand was completed this week together with the completion of re-seeding in areas that was affected by the lack of rain.
 
In June 2014, total corn export was 37,205 tonnes, with 36,200 tonnes going to the main destination, the Philippines.
 
Corn trading price this week soared to THB10.80/kg (US$0.335/kg) from last week's THB 10.70/kg (US$0.332/kg).
 
Soymeal price lowered to THB21.0/kg (US$0.65/kg) this week while rice by-products were higher: white rice bran this week traded at THB11.50/kg (US$0.36/kg) from THB 10.80/kg (US$0.33/kg) last week while rice bran residue price was higher to THB9.10/kg (US$0.283 kg) from THB8.80/kg (US$0.273/kg) last week.
 
Fishmeal demand was unchanged at THB29.70/kg (US$0.913/kg) from last week.
 
 
Market analysis
 
After the United States announced a preliminary TIP Tier 3 rating for Thai employment in the fishery industry, the industry concentrated more on standards. The final United States TIP report will be officially announced in September 2014.
 
The growing demand for responsibly produced fishmeal and fish oil is increasing the number of companies certified to have achieved the global standard developed by the International Fishmeal and Fish Oil Organisation's Responsible Supply (IFFO RS) programme. Already over 100 companies are certified under the standard and a number of companies are certified under the related Chain of Custody standard. Now, for the first time, two Asian companies have been certified under the IFFO RS Chain of Custody standard, demonstrating that they source approved RS fishmeal and fish oil from companies meeting IFFO's stringent standards. One of those companies is CPF of Thailand. It has been awarded the IFFO RS Chain of Custody standard and is currently sourcing IFFO RS approved products from Southeast Asian Packaging and Canning, Ltd. (SEAPAC), a subsidiary of Kingfisher Holding, Ltd., the first Asian company to have achieved compliance with the RS standard for its fishmeal and fish oil derived from tuna by-products.
 
The RS standard was developed by a multi-stakeholder group that included producers, feed manufactures, fish processors, retailers and environmental NGOs. Currently, over 100 companies certified to the standard produce about 40% of the world's fishmeal and fish oil. A certified company must be able to demonstrate full traceability of its products and the use of industry-leading, quality-management systems. All RS products must have been produced from whole fish that came from a fishery that was managed according to the FAO Code of Conduct for Responsible Fishing, or from by-products that were not from illegal, unreported or unregulated fish.
 
IFFO represents the marine ingredients industry worldwide. IFFO's members reside in more than 60 countries, account for over 50% of world production and 75% of the fishmeal and fish oil traded worldwide. Globally, approximately five million metric tonnes of fishmeal are produced each year, together with one million tonnes of fish oil. IFFO's headquarters are located in London, United Kingdom, and it also has offices in Lima, Peru and Beijing, China.
 

 FEED GRAINS

PRICE as of  Jun 30
(in Thai baht/kg)

PRICE as of  Jul 7
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn  

10.70

10.80

0.10

Cassava roots

2.20

2.20

---

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

315.00

315.00

---

White rice bran

10.80

11.50

0.70

Rice bran residue 

8.80

9.10

0.30

Soybean 

23.00

23.00

 ---

Soybean meal 

21.40

21.00

 -0.40

Fishmeal(protein more than 60%)

29.70

29.70

---

US$1=THB 32.15 (Aug 1, 2014)

 

 


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