April 3, 2009
Asia Grain Outlook on Friday: Thai export rice price seen stable for now
Thai export prices for rice may hover at the current level after two straight weeks of losses.
"While the export demand for rice is really weak, domestic prices are high, so export prices can't fall too much from current levels," said a trader in Bangkok.
The price of 100% grade B Thai white rice fell by around US$10 to US$620 a metric tonne over the week.
Thailand's federal government March 15 began paddy procurement for the crop currently being harvested, and is paying farmers 20%-30% more than the market price.
As a result, farmers are less keen to sell paddy to private millers.
The government has already procured 251,327 tonnes of paddy from farmers as of last week.
According to a report by the U.S. Department of Agriculture earlier this week, the government won't have any problems in procuring the targeted 2.5 million tonnes of paddy from the current crop.
Traders said big buyers of Thai white rice, such as Iran, are currently out of the market and only sporadic selling is being seen.
However, they added there is comparatively more demand for parboiled rice, which has a year-round steady market in African countries, such as Nigeria.
Parboiled rice is currently selling at a higher price than white rice, at around US$635/tonne, though still down US$5 from last week.
