Sweetcorn Prices

[thailandcalling]

Just cut our corn to find price down on last year even though world price are up about 80% All the factory's around Petchabun seem to be paying the same 6.40 per kilo. It's hard as fertilizer, tractor contractors and labor have all gone up considerably. All the locals as saying the new government has only just come to power and things will get better.

Anyone with similar experience ?

[kelboy]

Hi,

last week 9000bt for 1ton

this week 8500t for 1 ton.

[joker7]

We received 9300 baht per kilo that was about 3 weeks ago. Since then the rain has brought down the price.

[thailandcalling]

Hi,

last week 9000bt for 1ton

this week 8500t for 1 ton.

Hi Thanks for your reply which area are you selling. It seems the factories in Petchabun are cheating us. The best price we could find was 6400 per tone most factories were offering 6000. Just out of interest what was your moisture content ours was 27%.

Cheers

[WatersEdge]

Hi thailandcalling

It seems there are two different products discussed.

Let's clearly define terms.

Sweet Corn at 27% Moisture would be very dry,

while Yellow Grain Corn would be too wet.

I suggest that kelboy and joker7 are selling

Sweet Corn at the relatively high rates

while you are selling Yellow Grain Corn freshly harvested

At this time of the year, September & October,

the price of Yellow Field Corn is low during harvest,

and when the moisture weight is high.

Farmers sell only if they need fast cash

or if they don't have their own storage crib to dry it and

wait for the price to improve in December.

The penalty for moisture is prohibitive.

B0.10 / % Moisture above 14.5%

Let's round that to 15% as the desired standard.

Your Corn is 27% moisture, so you are 12 points high,

docking your price B1.20 / kg.

If you received B6.40 on 27% Corn,

then I should expect that the price posted on the sign at the gate is B7.60?

They may post the price according to the tin rather than by the kg.

A tin is the volume of a 5 gallon cooking oil tin,

which converts to 15 kg Corn.

In that case the gate posted price would be 15 x B7.60 => B114

Not all granaries post a price on the highway,

but they do usually have a rate sheet taped to the scale house window

In addition to this they also have 4 grades of grain quality.

Number 1 is good

Number 4 is bad.

The grading isn't as significant early in the season when corn is sold freshly cut from the field still on the cob. It comes into play later when mold, weevil, and debris blended in the grain are potential problems.

[thailandcalling]

Hi WatersEdge

Thanks for the mail and I agree with you comments.

My main confusion is we are getting 6400 per ton this year for freshly harvested corn, last year we were getting 7300. This reduction in selling price on top of the price increase in seeds harvesting and transportation is hard to understand. Whilst I know you can't compare like for like corn futures year over year are up about 80%

Many local farmers i know are making a loss because the selling price has gone down and producing costs have gone up.

Me thinks it's time to build that grain store.

Hi thailandcalling

It seems there are two different products discussed.

Let's clearly define terms.

Sweet Corn at 27% Moisture would be very dry,

while Yellow Grain Corn would be too wet.

I suggest that kelboy and joker7 are selling

Sweet Corn at the relatively high rates

while you are selling Yellow Grain Corn freshly harvested

At this time of the year, September & October,

the price of Yellow Field Corn is low during harvest,

and when the moisture weight is high.

Farmers sell only if they need fast cash

or if they don't have their own storage crib to dry it and

wait for the price to improve in December.

The penalty for moisture is prohibitive.

B0.10 / % Moisture above 14.5%

Let's round that to 15% as the desired standard.

Your Corn is 27% moisture, so you are 12 points high,

docking your price B1.20 / kg.

If you received B6.40 on 27% Corn,

then I should expect that the price posted on the sign at the gate is B7.60?

They may post the price according to the tin rather than by the kg.

A tin is the volume of a 5 gallon cooking oil tin,

which converts to 15 kg Corn.

In that case the gate posted price would be 15 x B7.60 => B114

Not all granaries post a price on the highway,

but they do usually have a rate sheet taped to the scale house window

In addition to this they also have 4 grades of grain quality.

Number 1 is good

Number 4 is bad.

The grading isn't as significant early in the season when corn is sold freshly cut from the field still on the cob. It comes into play later when mold, weevil, and debris blended in the grain are potential problems.

[WatersEdge]

A grain dryer is one of the market niches waiting to be fulfilled in Thailand.

Brokering grain requires a lot of money enabling you to buy wet during harvest and sell dry in December.

One useful idea for grain drying is to combine refrigeration with drying.

It gets into technical concepts and serious numbers quickly,

but to describe the basic concept....

Burning Corn Cob first to an Ammonia Absorption Refrigeration Boiler,

using the cold to chill three parts of damp grain to 1C,

while using all total heat to dry one part of grain,

you are able to bring in and keep preserved 4 times the grain served by only a dryer.

A storage chamber full of cold grain self insulates for a long time.

Just keeping the outside edges of the bulk volume cold is easy.

It also helps to pull a vacuum on a pile of grain,

removing the oxygen which would otherwise allow it to spoil.

The grain drying and handling industry in Thailand is still in infancy.

This applies to every other grain, not just yellow corn.

I can't explain why this year's granary price is lower than last year.

Could be that this year's crop is larger than last years,

so the domestic supply is larger than the grain handling network can move.

In which case, farmers should hold their damp grain in their own drying cribs until the price recovers.

Keep in mind that the price of grain in Thailand tends to run about 30% higher than the world market. In a high year with good supply, it could be that the grain traders are trying to remain competitive so as to sell it for export.

I haven't compared the numbers in a long time, so let's calculate

B6.40 / kg is equivalent to $5.43/bushel,

but your grain is 27% Moisture,

which must be standardized to 14.5%

This comes to $6.36 / bushel

Looking below, the world market price is not that much more,

and the grain handling people still have to make a living before selling your grain to the world customers.

Present world market is $7.60 / bushel

http://www.cmegroup.com/trading/agricultural/grain-and-oilseed/corn.html

This converts to B8.96/ kg

which backed off for your high moisture is B7.65

This means that the grain handling network is charging the difference

between B7.65 and B6.40 => B1.25 to dry, store, transport and sell your wet corn.

In terms of Standard Dry Grain 14.5% Moisture

They are paying you B7.50 for Still to be dried Corn to be sold at B8.96.

They are charging B1.46 for their services.

If you are selling your corn still on the cob,

not shelled on the farm,

then all these calculations must be redone for the 15% cob weight.

If this is the case, they are being overly generous, and cannot possibly export it.

Most Corn is bought as field damp cob corn during September

because shelled grain corn spoils much faster than cob corn.

Corn at 27% moisture must be forced air dried immediately after shelling,

or spread and stirred on open air concrete slab in the hot sun.

[thailandcalling]

A grain dryer is one of the market niches waiting to be fulfilled in Thailand.

Brokering grain requires a lot of money enabling you to buy wet during harvest and sell dry in December.

One useful idea for grain drying is to combine refrigeration with drying.

It gets into technical concepts and serious numbers quickly,

but to describe the basic concept....

Burning Corn Cob first to an Ammonia Absorption Refrigeration Boiler,

using the cold to chill three parts of damp grain to 1C,

while using all total heat to dry one part of grain,

you are able to bring in and keep preserved 4 times the grain served by only a dryer.

A storage chamber full of cold grain self insulates for a long time.

Just keeping the outside edges of the bulk volume cold is easy.

It also helps to pull a vacuum on a pile of grain,

removing the oxygen which would otherwise allow it to spoil.

The grain drying and handling industry in Thailand is still in infancy.

This applies to every other grain, not just yellow corn.

I can't explain why this year's granary price is lower than last year.

Could be that this year's crop is larger than last years,

so the domestic supply is larger than the grain handling network can move.

In which case, farmers should hold their damp grain in their own drying cribs until the price recovers.

Keep in mind that the price of grain in Thailand tends to run about 30% higher than the world market. In a high year with good supply, it could be that the grain traders are trying to remain competitive so as to sell it for export.

I haven't compared the numbers in a long time, so let's calculate

B6.40 / kg is equivalent to $5.43/bushel,

but your grain is 27% Moisture,

which must be standardized to 14.5%

This comes to $6.36 / bushel

Looking below, the world market price is not that much more,

and the grain handling people still have to make a living before selling your grain to the world customers.

Present world market is $7.60 / bushel

http://www.cmegroup....lseed/corn.html

This converts to B8.96/ kg

which backed off for your high moisture is B7.65

This means that the grain handling network is charging the difference

between B7.65 and B6.40 => B1.25 to dry, store, transport and sell your wet corn.

In terms of Standard Dry Grain 14.5% Moisture

They are paying you B7.50 for Still to be dried Corn to be sold at B8.96.

They are charging B1.46 for their services.

If you are selling your corn still on the cob,

not shelled on the farm,

then all these calculations must be redone for the 15% cob weight.

If this is the case, they are being overly generous, and cannot possibly export it.

Most Corn is bought as field damp cob corn during September

because shelled grain corn spoils much faster than cob corn.

Corn at 27% moisture must be forced air dried immediately after shelling,

or spread and stirred on open air concrete slab in the hot sun.

WatersEdge

Your knowledge is much appreciated.

Thailandcalling

[andycrosby]

I am looking to buy dried corn 2-3 ton broken animal feed grade to use as poultry feed anyone got an contacts or know any one round the north east around Khon Kaen , Maha Sarakham, Roi et, or Kalasin would be great and that would cut down on the transport costs thanks for any help Andy

[nitecm]

Hi

Any one Know any buyer or factory is buying sweet corn around Chiang mai and what is the price around sept , Oct or Nov?

nitecm