USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed
27 February 2012
Export prices increased approximately 1.0 per cent from the previous week as the strengthening Thai baht remains a concern for exporters. The Thai baht strengthened to 30.5 baht/$ this week, as compared to 30.7 baht/$ in the previous week.
In addition, foreign buyers are purchasing Thai parboiled rice for deliveries to Nigeria within June 2012 to avoid a higher applied import tariff rate (53 per cent vis-à-vis the current rate of 33 per cent) which will be effective in July 2012, as the shipments of Indian parboiled rice contracts are reportedly slow due to port congestion.
Meanwhile, the government tender on February 6-8, 2012 for 38,495 tons of broken rice from the current MY2011/12 main-crop Paddy Pledging Program will likely be cancelled as the bidding offers were 10-13 per cent below market prices.
However, exporters anticipate that the Government will likely conduct an additional tender in March 2012 for the old-crop intervention stocks, of which 2 million tons remain.
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 6.5 million tons of paddy (4.3 million tons milled equivalent) from October 7, 2011 – February 19, 2012. This accounts for 30.1 per cent 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 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, the Government will likely absorb an additional 5-6 million tons of paddy (4.0 million tons milled equivalent) from off-season crop Paddy Pledging Program during March 1 – June 30, 2012.
Rice Export Update
Unofficial rice exports (excluding fragrant rice) for February 13-19, 2012 totaled 118,258 tons, up 9,613 tons from the previous week, and up 25,126 tons from the four-week moving average of 93,132 tons.
Exports of white rice and parboiled rice during January1 – February 19, 2012 totaled 588,450 tons, down 55.5 per cent from 1,323,374 tons in the previous year.
According to the Department of Foreign trade, Ministry of Commerce, total rice exports (including fragrant rice) during January 1 – February 14, 2012 amounted to 638,489 tons, down 54.4 per cent from 1,400,839 tons in the previous year.
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