Required Report - public distribution

**Date:** 9/19/2006

**GAIN Report Number:** TH6095

TH6095

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2006**

**Approved by:**

![](media/image1.wmf)Gary Meyer, Agricultural Counselor

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Export prices surged, particularly for white rice, due to current
tighter exportable supplies. However, the prices will likely level off
next week.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Sep. 18):**

  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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   540            \-     535    535    520    520    520    528      528

  WR 100 B     320            324    321    317    320    318    320    320      317

  PB 5%        310            311    320    321    318    316    308    315      311

  WR 5%        315            320    316    314    310    310    315    314      311

  WR 10%       310            315    312    309    305    306    310    310      306

  WR 15%       299            310    299    304    295    292    305    301      299

  WR 25%       283            297    280    298    272    278    300    287      284

  WR 35%       280            \-     \-     293    270    273    \-     279      277

  A 1 SUP      231            230    230    228    230    231    228    230      220

  A 1 SPEC     229            228    228    226    228    \-     226    228      218

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

**Market Tone**

Export prices for most grades of rice increased significantly due to a
surge in domestic prices and the strengthening Thai baht. White rice
domestic prices surged due to tighter exportable supplies. Exporters are
aggressively sourcing white rice to fulfill outstanding shipments of
100% grade white rice to Iran this week. In addition, broken rice prices
increased sharply in response to strong seasonal demand from African
countries for shipments in October. Also, the Government is holding
outstanding stocks of white rice of around 1.7 million tons, of which
1.4 million tons were from the intervention program in 2005/06 and the
rest were from 2004/05 program. Meanwhile, the Thai baht strengthened to
37.1 baht/U.S.\$, compared to the previous week's average of 37.2
baht/U.S.\$. However, exporters expect white prices will likely level
off when loading activities of white rice to Iran are complete next
week.

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

  ---------- ----------- ----------- ----------- ------------ ------------
  WEEK       QUANTITY    4-WK AVG    YEAR TO     YEAR AGO     YEAR TO DATE
  ENDING                             DATE                     AS % OF LAST
                                                              YEAR

             (MT)        (MT)        (TMT)       (TMT)        \%

  JUL 30     87,709      88,460      2,803       3,075        -8.8

  AUG 6      55,278      80,608      2,859       3,168        -9.8

  AUG 13     55,807      74,814      2,915       3,259        -10.6

  AUG 20     79,618      69,603      2,994       3,361        -10.9

  AUG 27     101,889     73,148      3,096       3,463        -10.6

  SEP 3      83,897      80,303      3,180       3,529        -9.9

  SEP 10     98,168      90,893      3,278       3,589        -8.7

  SEP 17     111,044     98,750      3,389       3,683        -8.0
  ---------- ----------- ----------- ----------- ------------ ------------

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 Sep. 11-17, 2006
totaled 111,044 tons, up 12,877 tons from the previous week's total, and
up 12,295 tons from the four-week moving average of 98,750 tons. Exports
during Jan. 1 -- Sep. 17, 2006 totaled 3,389,141 tons, as compared with
3,682,802 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- Aug. 31,
2006, amounted to 4,788,869 tons, down 2.4 from 4,907,432 tons in the
previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Aug. 28 -- Sep.
1, Sep. 4-8, and\
Sep. 11-15, 2006 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Aug. 28 -- Sep. 1 Sep. 4-8          Sep. 11-15

  weekly sales        205,669           115,901           115,061

  4 week sum          516,575           513,052           504,001

  4 week mov. avg.    129,144           128,263           126,000

  Total weekly sales  4,054,371         4,170,272         4,285,333
  ------------------- ----------------- ----------------- -----------------

End of Report.