Kenya's government has ordered extra imports of corn to help boost the country's grain reserves after declaring the current drought a national disaster, according to reports.
The corn will be used to help affected livestock and people, according to Kenya President Mwai Kibaki. In addition, 1.6 billion shillings (US$18.6 million) were allocated to the water and irrigation and livestock ministries.
Animal feed producers in Thailand and the Philippines have canceled or delayed around 130,000 metric tons of soymeal imports as a surplus of South American supplies causes global prices to fall.
According to traders, the majority of the soymeal affected comes from Argentina, which is expected to produce a bumper soybean crop for the 2011 season.
“[Buyers] had overbought soymeal in forward deals and now that there is plenty of meal lying around, buyers are looking to postpone and even cancel shipments,” said a Singapore-based trader. “We expect more buyers to renegotiate and delay shipments.”
Soybean meal has lost 7% on the Chicago Board of Trade since the start of April. As of 8:05 a.m. CST on May 17, July futures were trading up 1%
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