Thailand’s corn prices remain under downward pressure

12.05.2017

Thailand’s corn production is expected to remain unchanged at 4.9 mmt, down 6% from marketing year 2016/17 in anticipation of an acreage reduction in response to unattractive returns, according to USDA GAIN report. Despite the domestic corn absorption requirements under the new import regulations for feed wheat, farm-gate price for corn remains low.

Moreover, the recent sale of 1.4 mmt of government feed-quality rice stocks to the swine feed industry will likely reduce domestic demand for corn and imported feed wheat throughout 2017. Feed wheat imports have declined significantly since the new import regulations were implemented in January 2017. Forecast for wheat imports remains unchanged at 3.6 mmt in marketing year 2016/17 and 3 mmt in 2017/18.


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