Kasikorn Securities (KS) wrote in its analysis, citing a local media source, that Thailand has finalized an agreement to purchase corn from the United States, with deliveries scheduled for September to October. This period coincides with Thailand’s domestic harvest season, and the reference price for the imported U.S. corn is set at THB 8.99 per kilogram.
According to Kasikorn, this development should be viewed positively for Thailand’s food producers, particularly within the livestock sector, as the import of U.S. corn is likely to lead to a reduction in feedstock costs.
The brokerage estimates an upside risk to the earnings forecasts for Charoen Pokphand Foods (CPF) and Betagro (BTG) of approximately 1-2% and 2-4%, respectively. These projections assume a total import quota of one million tons and a domestic-to-import purchase ratio of 3:1. The reference price for U.S. corn is reported to be around THB 1.5 to THB 3 per kilogram lower than the current average price of domestic corn.
Following these, Kasikorn maintains an ‘Outperform’ recommendation for both CPF and BTG, with a target price of THB 24.80 and THB 23.40, respectively.
As of 3:23 PM (Bangkok time) on Tuesday, the share price of Betagro Public Company Limited (SET: BTG) rose by 0.47% or THB 0.10 to THB 21.30, with a trading value of THB 93.27 million.
Charoen Pokphand Foods Public Company Limited (SET: CPF) surged 0.89% or THB 0.20 to THB 22.60, with a trading value of THB 513.83 million.
