Thai corn prices are likely to stay firm in the next few days due to strong demand from the domestic poultry industry as supplies decline, traders said on Tuesday.
"Corn demand from feedmills are expected to remain strong in the coming days," said one corn trader in Thailand, one of Asia's major chicken exporters.
Local corn, a major poultry feed ingredient, was offered on Tuesday at 5.1 baht/kg ($129/kg), versus last week's five baht.
Local soymeal was selling at 12.75 baht/kg ($322/tonne), up slightly from last week's 12.70 baht.
Traders said no Thai corn had been offered for export this week and that the corn trade had been sluggish with no new deals clinched in more than a month.
Thailand shipped 200,000 tonnes of corn in 2003, versus 150,000 tonnes shipped in 2002, figures from traders showed.
"The major buyers of corn in 2003 were Malaysia, taking over 55,000 tonnes, and Indonesia," said Thavee Tantiponganant, a leading corn exporter.
Thailand is not a major corn exporter in Asia. The country depended on corn imports until 2000, but exported 500,000 tonnes in 2001.
Thai frozen chicken meat was offered on Tuesday at $2,100-2,200/tonne C&F Japan, up from last week's $2,000. The price for live chicken was 28 baht/kg ($708/tonne), up from last week's 26 baht.
"The export price rose this week due to the stronger baht and continued strong overseas demand," said an official of one exporting firm.
At 0900 GMT, the baht was trading at 39.16 to the US dollar, its highest since mid-October. The Thai currency rose more than eight percent against the dollar in 2003.
Thailand's major markets for chicken meat are Japan and the European Union. Thailand's soybean and meals trade was quiet this week with several buyers covering their positions through to March arrival, soymeal traders said.
Argentine high-protein soymeal was offered on Tuesday at $315/tonne C&F for February shipment, versus last week's $328.
Indian soymeal was offered at $294-295/tonne C&F.
"A few feedmills are looking for Indian meals. They will clinch deals only when the price drops to $284," said one.