Soyameal prices rose this week due to higher demand from Thailand, where traders and feedstuff producers took advantage of a drop in prices last week, traders said on Tuesday. "Several deals were done at the end of last week as prices slid to an appropriate level to buy," a feedstuff producer told Reuters.
A trader said about 56,000 tonnes of Argentine soyameal was bought by feedstuff producers and was expected to arrive in Thailand in October. Argentine high-protein soyameal was offered at $235 per tonne cost and freight for August shipment, up from $229 per tonne last week. Low-protein soyameal was offered at $223 a tonne. Brazilian high-protein soyameal was quoted at $245 per tonne cost and freight.
"Prices were also up in line with CBOT prices," a trader said, referring to the Chicago Board of Trade.
CBOT July soyameal settled $1.10 a tonne higher at $175.70, tracking soyabeans gains on rising demand for US biodiesel production. Thailand could import up to 1.9 million tonnes of soyameal in 2006, up from around 1.5 million tonnes last year, as a substitute for more expensive fishmeal, traders said. However, they expected little activity in the near term until prices eased again.
Offers for Thai corn were steady, but trading was quiet as importers waited to buy at the end of July when the main crop will be harvested, traders said. Thai corn was offered at $155-158 per tonne, free on board, unchanged from last week.
"There was plenty of corn in the hands of local traders during the last few weeks. But they mostly sold to feedstuff producers," a trader said.
Feedstuff producers offered 6.30 baht ($0.166) per kg, down slightly from 6.50 baht last week as less stock was available at the end of the season which runs from July to June.
Exporters only offered 5.80 baht per kg due to thin overseas demand. "I think trading will revive at the end of July. Buyers are waiting for the new crop to come onto the market," another trader said. Thailand's Agriculture Ministry estimates the new corn crop at 3.9 million tonnes, up slightly from 3.8 million tonnes in the current crop year.