April 7, 2008

 

Asia Grain Outlook on Monday: Rice prices may rise on supply

 

 

Rice prices are expected to rise this week as global supply remains tight.

 

In the Chicago Board of Trade's electronic trading Monday, the May and July rice contracts hit fresh all-time highs.

 

At 0538 GMT, the May contract was at US$20.96 per hundredweight, 46.5 cents higher than Friday's U.S. close. The July contract hit limit-up, trading 50 cents higher at US$21.28/hundredweight.

 

In Thailand, exporters said they don't have much rice in hand as most stocks are in the hands of traders and mills.

 

However, Thailand's Finance Minister Surapong Suebwonglee said Friday the government doesn't plan to restrict rice exports and won't interfere in the rice markets.

 

Government officials said the country can export up to 1 million metric tonnes every month for the next few months.

 

However, the continued shortage in supply is a cause of concern for Asian importers such as Malaysia, Singapore, the Philippines, Indonesia and Bangladesh.

 

In Singapore, rice sales have risen in various supermarkets, the New Paper reported Monday, as consumers stock up on rice. Sales in the island nation's major retail chain NTUC FairPrice have increased by 30% over the week, while other retail outlets have seen a 10%-50% increase in rice sales, it said.

 

Tng Ah Yiam, NTUC FairPrice's director of integrated purchase, told the newspaper hoarding of rice was not advisable.

 

"Given the high humidity here (Singapore), there is a high likelihood of the growth of weevils (tiny beetles) if the rice is kept for too long," Tng said.