August 30, 2012
 
Thai Feed Weekly:  Thai corn price breaches THB12/kg for the first time in four years (week ended Aug 27)
 
An eFeedLink Exclusive
 
 
Price Summary
 
The price of Thai corn reached a four-year high of THB12.10/kg (US$.39/kg) this week fuelled by supply concerns as severe drought in the US threatens to cut American corn output by more than half.
 
With the US experiencing its hottest climate in many decades, the US Department of Agriculture has slashed its corn output estimate for this year from 274 million to 101 million tonnes, pushing corn prices around the world to spike.
 
 
Market analysis
 
The last time corn prices reached beyond THB12/kg (US$0.38) in Thailand was during the oil crisis in 2008 when tonnes of corn and other grains across the globe were diverted to ethanol production to ease the energy shortage.
 
But while corn supply looks dim during the next few months, the Thai government actually expects prices of domestic corn to plummet from next month.
 
The OAE reports that the Central Thailand province of Prachaup Khirikhan province will harvest 83,550 tonnes of corn in September, which should ease local supply concerns at least during the next few months.
 
But the OAE warns that since the province's corn is being harvested in September, in the thick of the rainy season, it faces the prospect of higher moisture content and the risk of aflatoxin contamination. About 80% of Thailand's annual corn output is usually harvested in the dry month of July.
 
The OAE adds that corn with high moisture contents commands a very low price. And when it becomes contaminated with aflatoxin, it almost loses its value because it becomes unfit as animal feed.
 
Reminding farmers to take every precaution so that their corn isn't unnecessarily exposed to rainwater during harvesting, the OAE says the Commerce Ministry is prepared to launch a multimillion-baht mortgage scheme to prevent corn prices from falling below THB9/kg (US$0.29/kg).
 

 

PRICE as of  Aug 20
(in Thai baht/kg)

PRICE as of  Aug 27
(in Thai baht/kg)

Changes
(in Thai baht/kg)

Corn (Moisture not more than 14.5%)
Delivered to feed factory

11.90

12.10

0.20

Corn Picked up at silo

9.82

9.82

--

Cassava

2.35

2.35

--

White Broken Rice A.1 Super (US$/tonne)

531.00

533.00

2.00

White rice bran

10.40

10.40

--

Rice bran residue 

7.80

7.80

 --

Soy

20.00

20.00

 --

Soymeal

21.98

21.98

--

Fishmeal (protein less than 60%)

25.50

26.14

0.64

US$1=THB 31.38 (Aug 30, 2012)

 


 
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