Thai millers fear RI corn defaults<\/p>\n
BANGKOK (Reuters): Thai feed mills, fearing that Indonesian
\nunrest and overselling of its corn might lead to defaults, are
\nseeking new zero-tariff corn import quotas from the Thai
\ngovernment, trade sources said yesterday.<\/p>\n
Many feared they would not be able to cover their needs from
\nIndonesia by the end-June deadline set by the government and that
\ncould be exacerbated by a local crop delay, they told Reuters.<\/p>\n
\"The Thai feedmill association is discussing the amount sought
\nbefore passing the proposal on to the commerce ministry. It will
\nbe well above 150,000 tons,\" said one trader.<\/p>\n
The government in March allowed the feed industry and end
\nusers to import 300,000 tons of corn tariff-free on condition
\nthat deliveries be completed by June 30. It is estimated that
\nuncovered demand stood at around 40,000-50,000 tons.<\/p>\n
\"Some feed producers waited until the last minute to buy,
\ntherefore their options are limited. They think they can buy
\ncheap Indonesian corn but there is no corn left there. Actually,
\nwe heard the country oversold and might have difficulties meeting
\nobligations,\" said another trader from a European house.<\/p>\n
\"The situation there also raised questions whether the
\nshipments will be able to arrive here in time,\" he said.<\/p>\n
Industry sources said the local crop might not be available by
\nJuly as earlier anticipated as extreme heat had killed most of
\nthe first crop and farmers had to replant.<\/p>\n
The local corn price edged up to 5.70 baht a kg from 5.35 a kg
\na week earlier on aggressive buying.<\/p>\n
Soymeal buying continued on a hand-to-mouth basis due to lack
\nof credit and a slowdown in local demand.<\/p>\n
Thailand imported only 241,815 tons of soymeal during the
\nfirst quarter of 1998 compared with 322,814 tons in the same
\nperiod a year ago.<\/p>\n
South American June soymeal was quoted around $183-185 per
\nton c&f Bangkok, traders said.<\/p>\n
Flour mills also entered the market for routine wheat buying.
\nTraders said one mill bought a cargo of optional-origin for June
\nshipment.<\/p>\n
\"Demand for wheat has dropped substantially. Last year
\nThailand imported around 500,000-550,000 tons. This year it won't
\nexceed 400,000 tons,\" said an executive at a major flour mill
\nhere.<\/p>\n
\"The crisis badly hit consumption of bread and confectionery
\nitems. It's the instant noodles industry that helps support wheat
\ndemand,\" he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/thai-millers-fear-ri-corn-defaults-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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