September 14, 2012
 
Thai Feed Weekly:  China's economic slowdown drags Thai corn prices down (week ended Sep 10)
 
An eFeedLink Exclusive
 
 
Price Summary
 
Prices of Thai corn continue their slide with feed factories now buying it at THB9.83/kg (US$0.32) on the average, THB1.52/kg (US$0.05/kg) less than last week's price of THB11.35/kg (US$0.37).
 
For corn picked up at silos, the price has plunged to THB8.39/kg (US$0.25/kg), from THB9.82/kg (US$0.32) last week, according to the latest survey by the Thai Office of Agricultural Economics (OAE).
 
 
Market analysis
 
Although the global corn situation remains volatile with the US Midwest struggling with the worst drought in decades, Thailand's corn prices began to soften lately.
 
Until last week, the price of Thai corn hovered at a four-year high of over THB12/kg (US$.39/kg) as the US drought threatened to substantially cut global corn supply. But an expected bumper local harvest this year has helped pull local corn prices down.
 
The agriculture department projects domestic corn production to be around 4.5 million tonnes this year, 200,000 tonnes more than last year's.
 
The OAE says that a slowdown in China's economy is also helping push local grain prices down. Since last year when it emerged from self-sufficiency to 6th largest importer in the world, China has been influencing global corn prices.
 
While China will still import 5.5 million tonnes this year, its corn imports next year is projected to go down by more than 80% because of good harvest and slower domestic demand due to the country's ongoing economic slowdown.
 
During the last two years, China helped drive Thai corn prices up by aggressively buying corn from Cambodia and Laos, traditionally Thailand's top corn suppliers.
 
Since July, the Thai government has been anticipating a sharp drop in domestic corn prices because of increased production.
 
Commerce Permanent Secretary Yanyong Phuangrach had earlier revealed that the government had in fact prepared a contingency plan should the price fall below THB8.35/kg (US$0.27).
 
 
PRICE as of  Sep 3
(in Thai baht/kg)
PRICE as of  Sep 10
(in Thai baht/kg)
Changes
(in Thai baht/kg)
Corn (Moisture not more than 14.5%)
Delivered to feed factory
11.35
9.83 
-1.52 
Corn Picked up at silo
9.82
8.39
-1.43
Cassava
2.35
2.35
--
White Broken Rice A.1 Super (US$/tonne)
533.00
541.00
8.00
White rice bran
10.30
10.60
0.30
Rice bran residue 
8.00
8.00
Soy
20.00
20.00
Soymeal
21.98
21.98
--
Fishmeal (protein less than 60%)
26.14
26.71
0.57
US$1=THB 30.79 (Sep 14, 2011)
 
 


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