SE Asian corn prices under supply pressure<\/p>\n
BANGKOK (Reuter): Domestic corn prices in Thailand and
\nIndonesia are likely to be under supply pressure from imports and
\nlocal harvests over the next week, traders in both countries
\nsaid.<\/p>\n
Flour prices in Malaysia, however, remain firm following a
\ngovernment-sanctioned rise in prices by 30 cents to 1.10 ringgit
\n(44 U.S. cents) a kg last week. Malaysian millers had been
\nsqueezed by high imported wheat prices which touched US$280 a
\nton in May from $222.95 in January<\/p>\n
In Thailand, two shipments of corn totaling 130,000 tons,
\nbought by Thai feed mills from Continental Grain for around $195-
\n$197 C&F a ton, have arrived in the country. A third shipment of
\n30,000 tons was due to arrive from Argentina by the end of June,
\na Thai trader said.<\/p>\n
Asked why domestic corn prices were seen heading south, the
\ntrader said: \"The first reason is the arrival of the imports and
\nthe second is that the new crop is almost ready for harvest.\"<\/p>\n
The Thai domestic maize\/corn price paid by feed producers
\neased to an average 330 baht\/60 kg compared with 336 baht\/60 kg
\nlast week, traders said.<\/p>\n
In Indonesia, corn was quoted unchanged from last week at
\naround Rp 600\/kg in Jakarta, traders said.<\/p>\n
\"Feedmills have been very passive in the past week,\" one
\nIndonesian trader said. \"Unless they really needed supplies, they
\nwere out of the market waiting for the harvests.\"<\/p>\n
Corn imports from Vietnam were entering the country, but there
\nwere no immediate details, the trader added.<\/p>\n
Indonesian corn will be harvested from the key growing regions
\nof East Java and Lampung in South Sumatra. The two regions
\nusually yield about 400,000 tons of corn per harvest.<\/p>\n
One trader said the harvests in Lampung could be affected by
\nbad weather, but the report could not be confirmed.<\/p>\n
\"I heard the weather has not been favorable and that the size
\nof the crop could be smaller,\" the trader said. \"By how much
\nlower, I really don't know.\"<\/p>\n
In Malaysia, the increase in domestic flour prices to reverse
\na shortage in supply led some traders to estimate that the
\ncountry could soon import up to a 100,000 tons of wheat.<\/p>\n
\"We'll get some relief from the increase but it won't be a
\nwindfall,\" said the purchasing official of a Malaysian flour
\nmill. \"Our production will still depend on how much wheat we buy
\nand the price we get.\"<\/p>\n
\"It's important to remember that no one's going to rush and
\nbuy this quantity of wheat. The mills need the wheat but prices
\nare still high and they will buy according to their schedule,\" a
\nmill spokesman added.<\/p>\n
For the current week, \"A\" grade wheat in bags was priced at
\naround 970 ringgit a ton, while low grade wheat in bags was
\naround 650-700 ringgit, both ex factory\/godown central region,
\nindustry sources said.<\/p>\n
Corn was quoted at 580-590 ringgit a ton in bulk ex
\nfactory\/godown in the central region, the sources added.<\/p>\n
Soymeal prices in Thailand and Indonesia have eased this week,
\nbut were reported mixed in Malaysia.<\/p>\n
Imported soymeal in Malaysia was steady at 770 ringgit a ton
\nin bags ex-factory\/godown central region, but local material was
\nup slightly to 785 ringgit from 780 last week.<\/p>\n
In Indonesia, soymeal eased to Rp 770-780\/kg from Rp 800 a
\nweek ago, traders said.<\/p>\n
Soymeal prices in Thailand fell to an average of 9.60 baht\/kg
\non Tuesday compared with 9.80 baht\/kg last week. The lower prices
\nwere attributed to Thai meat producing associations importing
\nlow-priced Indian soymeal, one trader said.<\/p>\n
\"I think (soymeal) prices will still come down, maybe another
\n20 or 30 satang (0.2-0.3 baht) by next week,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/se-asian-corn-prices-under-supply-pressure-1447893297",
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