08 February 2012
Meanwhile, the Government is conducting a tender this week to release 38,495 tons of broken rice from the current MY2011/12 Paddy Pledging Program.
Market ToneDespite lack of enquiries, rice exporters made offers $5-10/MT higher in their quotations due to concerns over the strengthening of the Thai baht to 30.7 baht/$, compared to 31.0 baht/$ in the previous week. Some quotations are based on the exchange rate of 30.0 baht/$. Meanwhile, the Government will conduct a tender on February 6-8 for 38,495 tons of broken rice from the current MY2011/12 main-crop Paddy Pledging Program. As of February 7, there is only one rice packer participating in the tender. Exporters are not interested in the tender as current export prices of Thai broken white rice are even $70/MT higher than those of Vietnamese 5% grade white rice.
Presently, the Government is holding old-crop intervention stocks of around 2.0 million tons. Meanwhile, the current Paddy Pledging Program has pledged a total of 6.1 million tons of paddy (3.8 million tons milled equivalent) from October 7, 2011 – January 29, 2012 (Table 2). This accounts for 28.2 percent of the expected total MY2011/12 main-crop production of 21-22 million tons of paddy (14.5 million tons milled equivalent). The Government expects the program will finally absorb only 7.0 million tons of paddy (4.6 million tons milled equivalent) when it finalizes on February 29, 2012, far below its initial target of 10.0 million tons of paddy. However, if the Government continues the Paddy Pledging Program for the off-season crop during March 1 – June 30, 2012, the program will likely absorb an additional 5-6 million tons of paddy (4.0 million tons milled equivalent). As a result, the outstanding intervention stocks will likely increase to 10-11 million tons (milled basis) by the end of June 2012.
Rice Export Update
Unofficial rice exports (excluding fragrant rice) for January 30 – February 5, 2012 totaled 73,902 tons, up 2,179 tons from the previous week, and down 882 tons from the four-week moving average of 74,784 tons. Exports of white rice and parboiled rice during January1 – February 5, 2012 totaled 351,966 tons, down 61.7 percent from 919,246 tons in the previous year.
According to the Department of Foreign trade, Ministry of Commerce, total rice exports (including fragrant rice) during January 1 – 31, 2012 amounted to 387,748 tons, down 58.0 percent from 922,322 tons in the previous year.
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