August 29, 2013

Corn import from Cambodia hits Thai corn price (week ended Aug 19)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Corn imports from Cambodia are still causing a glut in the local corn market, while excessive stock held by corn traders is affecting their financial liquidity. Corn price decreased to THB9.35/kg (US$0.29/kg) from THB9.45/kg (US$0.30/kg), while soybean and soymeal prices are quite stable.
 
In Phetchabun province, a crowd of corn farmers gathered in protest, such that the Phetchabun province governor has to launch support measures by purchasing corn with 30% moisture at THB7.20/kg (US$0.22/kg); and corn with 14% moisture at THB9.50/kg (US$0.30/kg) to appease the crowd. This similar situation happened in many other provinces.
 
 
Market analysis
 
Purchase price of corn at feed mills continue to decrease, amid stricter inspection by feed millers. Some feed mills have passed lower grade corn to cereal factories to process into cereals for human consumption.
 
The government has not implemented any measurements to solve problems related to corn price but only urged feed mills to purchase local corn to reduce the oversupply. This suggestion from the government is also a cause of decreasing prices. Corn traders reduced purchases from farmers, after they were unable to sell to feed mills, in addition to their high level of corn stock.
 
Corn traders are still holding stock from last year's crop, after faced with delayed payment by large feed mills since last year, forcing them to stop delivery to these feed mills. There resulted in corn traders facing financial problems and in turn affecting corn farmers.
 
Apichart Jongskul, secretary general of the Office of Agricultural Economy (OAE) said that corn production this year will reach 4.88 million tonnes, an increase of 2% on-year. The period for harvest to market is during the period of July to December 2013. Currently, the problem is lower price due to excessive stock coupled with lower local demand, particularly from feed mills.  OAE suggests that farmers delay harvest and try to reduce their cost of production.
 
Cassava production is expected to be 27.46 million tonnes this year, from a cultivated area of 3.264 million acres. In August 2013, cassava production will be 0.93 million tonnes, or 3.37% of total annual production. The accumulated cassava production since the beginning of the season, or since October 2012 to June 2013, is 24.85 million tonnes, or 90.50% of total expected production.
 
In the 2014 season, cassava production is forecast at 28.22 million tonnes from a cultivated area of 3.208 million acres, from 3.264 million acres this year, a decrease of 1.67%.
 

 

PRICE as of  Aug 12
(in Thai baht/kg)

PRICE as of  Aug 19
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn 

9.45

9.35

-0.10

Cassava roots

2.55

2.55

---

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

487.00

479.00

-8.00

White rice bran

10.50

10.30

-0.20

Rice bran residue 

Soybean 

9.00

9.00

 ---

Soybean meal 

20.15

20.15

 ---

Fishmeal (protein more than 60%)

18.20

18.15

-0.05

US$1=THB 30.75 (Aug 29, 2013)

 

 

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