August 17, 2005

 

Thai Corn Market: Prices mostly stable; harvest to bump up supplies (week ending Aug 17, 2005)

  

An eFeedLink exclusive report

 

  

Thailand's domestic corn prices ended generally stable in the week to Aug 17, with supply gradually increasing as the harvest season is underway, local industry players said.

 

Despite rising supplies, total annual production is expected to be significantly lower than the year before.

 

"Corn cultivation will be smaller as many farmers have switched to other agricultural crops such as cassava roots,"a local corn merchant said.

 

Thailand's Ministry of Agriculture and Cooperatives have also predicted this year's corn production at about 4 million tonnes, a drastic drop of 4.29 million tonnes from 2004's.

 

In Bangkok, ex-feed mill corn prices stood at THB5.50-5.55/kg in the week ending Aug 17, similar to the previous week's THB5.47-5.55/kg, according to the country's Department of Internal Trade of the Commerce Ministry.

 

However, prices this week were lower than the average prices in July, which stood at THB5.47-5.65/kg, said the Department of Internal Trade.

 

Data from the Ministry of Agriculture and Cooperatives also showed that Thai corn's FOB export price was about US$145 a tonne in the week ending Aug 17, a slight rise from about US$141/tonne in late July.

 

Corn exports also dropped sharply by 93 percent for the first half of this year to 32,778 tonnes, due to lower production and higher domestic demand after bird flu.

 

Domestic corn prices are also expected to weaken in September-November, as supplies will rise drastically during this normally peak harvesting period, industry sources said.

 

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