Thai corn prices firm

Thai corn prices are expected to hold firm over the next few days, backed by strong demand from the domestic poultry industry and good overseas demand, traders said on Tuesday.
"Feedmills such as Chorine Pokphand feedmills have been buying steadily," a trader said with the domestic price of corn, a major ingredient in poultry feed, steady at 6,450 baht a tonne ($177).
Corn trade has been active with several deals done with buyers in Malaysia, Vietnam and Indonesia over the past week, traders said. The deals were done at between $185 and $190 a tonne free on board for December shipment, traders said.
"As much as 100,000 tonnes is estimated to have been sold for December shipment," Thavee Tantiponganand said. His Tanyaphan firm had sold around half of that, he added. Thai corn for export was offered steady at $190 a tonne, free-on board for December shipment.
"Yet we are cautious to sell because we are concerned about the Thai baht as well as domestic supply," another trader said as Thailand's corn harvest, which started in July, neared its end. The baht has risen more than 12 percent against the dollar this year and, it was at 36.39, a hair's breadth from 7-1/2-year highs of 36.36 struck this month.
Soyameal trade has also been active with several deals done for shipment between December 15 and January 15. On Tuesday, Argentine high-protein soyameal was offered around $259-260 a tonne, cost and freight for January shipment.
Argentine low-protein soyameal was around $249. The Krungthai feedmills bought 10,000 tonnes of Argentine high-protein soyameal from the Noble trading firm at $255 a tonne, cost and freight (C&F). "Riangthong has bought 4,000 tonnes of Argentine high-protein soyameal from the same trading house at around $255 a tonne," a trader said.
The Lee feedmills bought 6,000 tonnes of Argentine high-protein soyameal from Noble at $255 a tonne C&F. Better bought around 16,000 tonnes of Argentine high-protein soyameal from Cargill at $254-255 a tonne C&F for December 10-January 10 shipment, traders said.
"Better has also bought 8,000 tonnes of Brazilian high-protein soyameal from Cargill at around $264-265 a tonne C&F for the same shipment," one trader said. Creamer Asia Trade sold 5,000 tonnes of Argentine high-protein soyameal to the Kanchana feedmills at $255 a tonne C&F, traders said.
The government has yet to announce its 2007 soyameal import policy. "Officials at the Commerce Ministry have informed us that the proposal is expected to be submitted for the cabinet's approval in its meeting on December 19," an official of the Thai Feedstuff Users Promotion Association said.
The government ousted in a bloodless September 19 coup had agreed to allow duty-free soyabean imports, as in 2006, but had yet to decide on soyameal imports for 2007.
Last year, soyameal imports carried a 4-percent import duty. Thailand imports almost 2 million tonnes of soyameal and a similar amount of beans annually, mostly for feed. Its main suppliers are Argentina, Brazil and the United States.