The USDA has lowered its forecast for Thailand’s corn production in MY2022/23 to 5.2mt in anticipation of reduced corn acreage. Expected abundant water supplies and favorable weather could persuade farmers to switch to crops with lower maintenance costs and higher returns, such as rice and cassava. Farmers are also likely to apply less chemical fertilizer due to high prices, hence lowering yield. In June 2022, average fertilizer prices were USD 728/ton, 66% higher than the 5-year average. Farm price of corn was USD 287/ton in July 2022, up 25% yoy.
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