Indonesian corn imports are expected to triple to as much as 1.5 million tonnes this year as unexpected long monsoon rains have depressed output, an official said. "We're experiencing difficulties to buy local corn because the supplies are dwindling," said Anton J. Supit, head of the national corn council, adding that feed manufacturers may seek cheaper supplies from South America.
The increased buying could further bolster global corn prices, which have risen amid tightening stocks and higher demand due to increased ethanol production. The benchmark Chicago Board of Trade corn prices surged to a near two-year high above $5 a bushel on Friday.
Indonesia's State Statistics Bureau in July forecast a slight drop in corn output to 18.01 million tonnes from an initial forecast of 18.12 million tonnes earlier this year. The bureau makes three projections of food crop output in a year. The shortfall is compounded by higher domestic consumption. Feed millers are expected to produce 9.2 million tonnes of animal feed this year, compared with 8.6 million tonnes in 2009, on rising demand from the poultry industry.