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USDA GAIN: Oilseeds, Cotton, Sugar, Grain and Feed


09 October 2012

USDA GAIN: Thailand Weekly Rice Price Update - 9 October 2012USDA GAIN: Thailand Weekly Rice Price Update - 9 October 2012

TH 2101 – Export prices declined 1-2 percent due to the release of government rice stocks and a lack of new inquiries. The Government released 57,604 metric tons of fragrant rice below current market prices. Meanwhile, the Thai Cabinet approved the 240 billion baht ($8 billion) MY012/13 Paddy Pledging Program.
USDA GAIN Report - Oilseeds, Cotton, Sugar, Grain and Feed

Domestic and export prices for most grades of rice declined 1-2 percent from the previous week due to the release of government rice stocks and a lack of new inquiries. On September 28, 2012, the Commerce Ministry released 57,604 metric tons of rice out of the 586,193 metric ton tender that was announced on September 19, 2012 (Table 2). Around 50 percent of the stock release consisted of 100% B grade fragrant rice. Bids were finalized at $758 – 939/MT, approximately 20 percent below current market prices. The stock release also included 22,000 tons of broken fragrant rice at $484 – 526/MT roughly 8 percent below current market prices. Provincial fragrant rice, Pathumthani fragrant rice, and glutinous rice made up the remaining mix.

Foreign buyers are holding off finalizing their contracts as the government gradually releases stocks. The new tender is likely to be conducted in mid-October 2012.

BangkokThe Thai Government is currently holding total intervention stocks of around 14-15 million metric tons; of which 1-2 million metric tons are old-crop rice. As of September 13, 2012, the MY2011/12 Paddy Pledging Program pledged 20.7 million metric tons of paddy (13.7 million metric tons milled equivalent); of which 7.0 million metric tons are main-crop paddy (4.6 million metric tons milled equivalent - Table 3), and 13.8 million metric tons are off-season crop paddy (9.1 million metric tons milled equivalent - Table 4).

On October 2, 2012, the Cabinet approved a budget of 240 billion baht ($8 billion) to fund a portion of the MY012/13 Paddy Pledging Program. The approved program was funded considerably lower than expected due to budgetary concerns, but it will enable farmers to receive loans during the MY2012/13 main rice growing season. The program will be effective from October 1, 2012 – February 28, 2013 with the pledging target range of 15.0 million metric tons of paddy (roughly 10 million tons milled equivalent). The intervention prices remain unchanged for white rice paddy (13,800 - 15,000 baht/tons ($444 – $482/MT)) which is around 40 percent above current market prices. Fragrant rice paddy prices will range between 18,000 – 20,000 baht/ton ($579 – $643/MT), which is 20 percent above current market prices. No limit restrictions were imposed on the pledged amount. The program will be funded by a 150 billion baht ($5.0 billion) loan from government banks and 90 billion baht ($3 billion) from the release of government rice stocks. The Cabinet may consider another budget for the MY2012/13 offseason rice crop next year.

Rice Export Update

Unofficial rice exports (excluding fragrant rice) for September 24-30, 2012 totaled 98,922 tons, up 7,492 tons from the previous week and up 18,442 tons from the four-week moving average of 80,480 tons. Exports of white and parboiled rice from January 1- September 30, 2012 totaled 3,622,435 tons, down 49.7 percent (7,207,282 tons) from last year.

According to the Department of Foreign trade, Ministry of Commerce, total rice exports (including fragrant rice) from January 1 – September 21, 2012 amounted to 4,817,590 tons, down 45.1 percent (8,774,314 tons) from last year.

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