Voluntary Report - public distribution

**Date:** 11/2/2004

**GAIN Report Number:** TH4122

TH4122

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2004**

**Approved by:**

![](media/image1.wmf)Rod McSherry, Agricultural Counselor

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist/Russ Nicely, Agricultural
Attache

**Report Highlights:**

Export prices for white rice remained unchanged at high level.
Meanwhile, fragrant rice prices increased significantly.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Nov. 1):**

  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- ------
  Thailand:                                                                      
  Export (FOB)                                                                   
  Prices for                                                                     
  various                                                                        
  grades of                                                                      
  rice                                                                           
  (USD/M.T.)                                                                     

               Exporter                                                 Period   
               Observations                                             Avg.     

               #1             #2     #3     #4     #5     #6     #7     CUR.     PRV.

  F WR 100 B   410            430    410    447    407    415    420    420      402

  WR 100 B     255            258    259    259    258    257    253    257      257

  PB 5%        254            262    262    260    258    264    250    259      259

  WR 5%        250            253    256    254    252    252    248    252      252

  WR 10%       248            248    252    251    249    250    243    249      249

  WR 15%       244            245    248    249    246    247    238    245      246

  WR 25%       238            241    244    244    231    232    233    238      238

  WR 35%       234            238    240    241    230    230    228    234      235

  A 1 SUP      207            208    \-     205    205    204    200    205      205

  A 1 SPEC     205            207    \-     202    203    \-     198    203      203

                                                                                 

  Source:                                                                        
  Average                                                                        
  actual                                                                         
  prices                                                                         
  received                                                                       
  from                                                                           
  exporters                                                                      
  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- ------

**Market Tone**

Export prices for white rice leveled off, following less aggressive
shipment to African countries. Shipments to fulfill the outstanding
contracts of African countries were reportedly robust in October, as
vessels were available. As a result, Thai rice exports reached another
record around 1 million ton in October 2004, of which 0.9 million tons
are white rice. However, prices remained high, as the new government
intervention program has already started since Nov. 1 with relatively
higher intervention prices, as compared to current domestic prices.
Trade sources reported that export prices for 100% grade white rice will
likely be at approximate US\$ 305/mt, if domestic market prices for 100%
grade white rice paddy are equal to the intervention prices of 6,600
Baht/ton.

As for fragrant rice, export prices increased significantly in response
to new order demand from regular buyers, in particular China, which
normally looks for supplies of new fragrant rice crop. However, current
prices remained low, as compared to over US\$ 500/mt at the beginning of
the year. This reflected the price competition from the supply of
relatively cheaper Thai Pathumthani fragrant rice (around US\$ 100/mt
less than Jasmine rice). According to the recently announced Thai
Phathumthani Fragrant Rice Standard, effective October 21, 2004,
Pathumthani fragrant rice is officially classified as another type of
Thai fragrant rice, produced from the Pathumtani 1 variety.

The following are reported rice exports (as is basis)**:**

  ------------ -------------- -------------- ------------- ---------------
  WEEK ENDING  QUANTITY       4-WK AVG       YEAR TO DATE  YEAR AGO

               (MT)           (MT)           (TMT)         (TMT)

  SEP 12       112,729        123,755        5,167         3,406

  SEP 19       174,336        135,781        5,342         3,510

  SEP 26       221,118        151,131        5,563         3,524

  OCT 3        194,347        175,648        5,757         3,708

  OCT 10       198,009        196,953        5,955         3,797

  OCT 17       214,774        207,062        6,170         3,912

  OCT 24       208,260        203,847        6,378         4,035

  OCT 31       235,062        214,026        6,613         4,188
  ------------ -------------- -------------- ------------- ---------------

Note on data: Export figures since March 22, 2002, do not include
fragrant rice. The authority to report fragrant rice exports was moved
from the Thai Board of Trade to the Ministry of Commerce's Office of
Commodity Standards, which does not release official fragrant rice
export data. FAS/BKK will report only official export numbers from the
Board of Trade for non-fragrant and from the Office of Commodity
Standards for fragrant rice when available, but the reader should bear
in mind the difference between the data.

Unofficial exports (excluding fragrant rice) for Oct. 25-31, 2004
totaled 235,062 tons, up 26,802 tons from the previous week's total and
up 21,036 tons from the four-week moving average of 214,026 tons.
Exports during Jan. 1 -- Oct. 31, 2004 totaled 6,613,095 tons, compared
with 4,187,940 tons during the same period in 2003.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1- Oct. 22,
2004, amounted to 8,004,129 tons, up 40 percent from 5,715,537 tons in
the previous year. Despite reportedly anticipated slowdown in Thai rice
exports for the rest of the year, total rice exports are expected to
reach record 9.5 million tons in CY 2004.

**Weekly Rice Sales**

Private registered rice export sales for the period of Oct. 11-15, Oct.
18-22, and\
Oct. 25-29, 2004 are as follows:

  -------------------- ---------------- ---------------- ----------------
  Movement (MT)        Oct. 11-15       Oct. 18-22       Oct. 25-29

  weekly sales         194,022          248,347          188,569

  4 week sum           756,551          875,435          769,228

  4 week mov. avg.     189,138          218,859          192,307

  Total weekly sales   6,938,310        7,186,657        7,375,226
  -------------------- ---------------- ---------------- ----------------

End of Report.