September 12, 2012
 
Thai Feed Weekly:  Thai corn prices soften on increased local harvests (Week ended Sep 3, 2012)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Thai corn prices have started to soften as expected, although the global corn situation remains volatile as the US Midwest continues to struggle with the worst drought in decades.
 
CP Feeds reports that the average buying price of corn among Thai feed millers is THB11.35/kg (US$0.37), down THB.75/kg (US$0.02/kg) from last week.
 
 
Market analysis
 
Until last week, the price of Thai corn hovered at a four-year high of over THB12/kg (US$.39/kg) as the drought in the US Midwest threatened to substantially cut global corn supply.
 
In July, the US Department of Agriculture trimmed its corn output estimate for this year from 274 million to 101 million tonnes, causing corn prices around the world to surge.
 
While the US supply corn situation caused a spike in local prices, the Thai government warned in July that local corn prices could sharply fall because of an expected bumper harvest.
 
Commerce Permanent Secretary Yanyong Phuangrach had earlier predicted that local corn prices would plunge in the next few months as Thailand's corn harvests this year are expected to surpass last year's level by about 200,000 tonnes.
 
The US Department of Agriculture expects Thai corn output this year to be around 4.5 million tonnes, up from last year's 4.3 million tonnes. Up to 80% of the country’s annual corn production is usually harvested in July.
 
Mr. Yanyong said the government was in fact prepared to launch a pledging program should the price fall below THB8.35/kg (US$0.26).
 
 
PRICE as of  Aug 27
(in Thai baht/kg)
PRICE as of  Sep 3
(in Thai baht/kg)
Changes
(in Thai baht/kg)
Corn (Moisture not more than 14.5%)
Delivered to feed factory
12.10
11.35
-0.75
Corn Picked up at silo
9.82
9.82
--
Cassava
2.35
2.35
--
White Broken Rice A.1 Super (US$/tonne)
533.00
533.00
--
White rice bran
10.40
10.30
-0.10
Rice bran residue 
7.80
8.00
Soy
20.00
20.00
Soymeal
21.98
21.98
--
Fishmeal (protein less than 60%)
26.14
26.14
--
US$1=THB 31.38 (Aug. 30, 2011)
 
 


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