Author Topic: Global market awaits cheap Thai rice  (Read 644 times)

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Offline thaiga

Global market awaits cheap Thai rice
« on: March 06, 2014, 02:29:04 PM »
Rice traders on the world market have temporarily paused dealing to wait for the Thai government to sell its stockpile cheap to repay a 20 billion baht loan to finance the rice-pledging scheme, according to an exporter of the grain.

The Election Commission (EC) has approved the caretaker government's plan to disburse 20 billion baht from the Central Fund to pay farmers long-overdue money for pledged rice crops.

However, the government must pay back all the money before May 31, 2014.

Chookiat Ophaswongse, honorary president of the Thai Rice Exporters Association, said the price of 5% broken rice price from Thailand had dropped by US$20 a tonne, from $435-445 three weeks ago to $415-425 a tonne.

The price of Thai parboiled rice has also fallen by $15 a tonne in one week, from $460-470 to $445-455 a tonne.

He predicted that the price of Thai rice would drop further in the near future since Vietnam’s second-crop rice would be harvested from the middle of March onwards. Vietnam is expected to produce more than 10 million tonnes of unmilled rice this harvest.

At the same time, rice producing countries including India and Pakistan also hold significant stocks to be released onto the world market. As a result, tougher competition is expected and prices are likely to be pressured down, he said.

The price of 5% white rice from Vietnam is currently between $385-395 a tonne, while India selling its equivalent at $415-420 and Pakistan at $395-405.

“Rice buyers have stopped purchasing as they wait for cheaper prices, particularly after the Election Commission set the deadline for repayment of the 20 billion baht at the end of May. This means that Thailand has to sell more than two million tonnes in the market. When buyers realised this, they decided to wait to buy cheaper rice,” said Mr Chookiat.

The Thai Foreign Trade Department on Wednesday announced a government-to-government deal with China to sell one million tonnes of rice, with an agreement inked by the department and the state-owned China National Cereals, Oils and Foodstuffs Corporation in Beijing this week.   

bangkokpost

Vietnam to stockpile 1m tonnes of rice

HANOI - Vietnam, the world's second-largest rice exporter, will stockpile 1 million tonnes of rice in the winter-spring crop to help boost prices, authorities said Thursday.

The stockpile will run from March to mid-April, the Vietnam Food Association said, which will affect Vietnam's biggest rice-producing region, the Mekong Delta.

Around 10.3 million tonnes of unhusked rice is expected to be produced in the Mekong Delta during this period, the Ministry of Agriculture and Rural Development said.

Export volume fell sharply in the first two months of this year and is predicted to remain low in the coming months due to weak demand in the global market and strong competition from other rice exporters, including Thailand, India and Myanmar.

A number of rice exporters have asked the government to boost exports to countries including China, Indonesia and the Philippines.

Vietnam plans to export 7 million tonnes of rice this year, up from 6.88 million tonnes, worth US$2.89 billion (94 billion baht) last year.

bangkokpost

A Vietnamese farmer tends his rice field next to a power and manufacturing facility just outside Ho Chi Minh City. The world's second-largest rice exporter will stockpile 1 million tonnes of rice in the winter-spring crop to help boost prices. (Bloomberg photo)
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Offline pop401k

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Re: Global market awaits cheap Thai rice
« Reply #1 on: March 06, 2014, 05:21:10 PM »
I guess Vietnam hasn't heard about Thailand's stockpiling scheme...  With too much rice "in the system" (stockpiled, marketed etc.) they'll either be stuck with it pretty much forever, or they'll have to cut back production, given they want to maintain the price.
 

 



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