Sunday, June 5, 2011

Kenya orders corn imports for poultry feed to offset drought disaster



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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