Required Report - public distribution

**Date:** 10/10/2006

**GAIN Report Number:** TH6103

TH6103

**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 were mixed due to current surge in floodwaters. Most
trading activities will likely resume in the next couple of weeks.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Oct. 9):**

  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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    543            510    535    498    520    505    520    519      521

  WR 100 B      310            315    304    310    315    304    300    308      306

  PB 5%         300            317    307    312    318    310    300    309      308

  WR 5%         300            310    296    302    305    296    295    301      298

  WR 10%        295            305    291    296    300    292    290    296      293

  WR 15%        286            300    286    294    290    280    285    289      286

  WR 25%        270            277    278    286    267    264    280    275      274

  WR 35%        268            \-     \-     283    265    260    \-     269      269

  A 1 SUP       222            \-     227    219    230    217    226    224      224

  A 1 SPEC      220            \-     225    216    228    \-     224    223      223

  Source:                                                                         
  Average                                                                         
  actual prices                                                                   
  received from                                                                   
  exporters,                                                                      
  Exchange                                                                        
  rate: 37.5                                                                      
  baht/U.S.\$                                                                     
  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------

**Market Tone**

Export prices were mixed due to current surge in floodwaters. Exporters
are hesitant to pile up stocks, as most warehouses are located on
riverside. Also, local millers in flood-affected areas reportedly
stopped sourcing paddy due to the concern over the surge in floodwaters
this week. Trading activities will likely resume in the next couple of
weeks when floodwaters are expected to recede in most areas. Presently,
flood-affected areas total 39 provinces, most of which are in the north
and central plain. It is too early to estimate the damage areas.
However, most exporters expect that the impact on crops is marginal.

As for the new intervention program, normally starting on November 1,
the Government will likely announce the intervention prices by the end
of this month. The intervention prices are expected to remain at the
same levels as in the previous year's, despite a call to increase the
intervention prices to 12,000 baht/ton (roughly U.S.\$ 320/MT) for
fragrant rice paddy and 8,100 baht/tons (U.S.\$ 216/MT) for white rice
paddy.

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)        \%

  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

  SEP 24     109,071     100,545     3,498       3,773        -7.3

  OCT 1      86,993      101,319     3,585       3,882        -7.7

  OCT 8      81,818      97,231      3,667       3,950        -7.4
  ---------- ----------- ----------- ----------- ------------ ------------

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. 2-8, 2006 totaled
81,818 tons, down 5,175 tons from the previous week's total, and down
15,414 tons from the four-week moving average of 97,231 tons. Exports
during Jan. 1 -- Oct. 8, 2006 totaled 3,667,023 tons, as compared with
3,959,811 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- Sep. 26,
2006, amounted to 5,322,685 tons, down slightly from 5,361,497 tons in
the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Sep. 18-22, Sep.
25-29, and\
Oct. 2-6, 2006 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Sep. 18-22        Sep. 25-29        Oct. 2-6

  weekly sales        82,685            68,153            81,995

  4 week sum          519,316           381,800           347,894

  4 week mov. avg.    129,829           95,450            86,974

  Total weekly sales  4,368,018         4,436,171         4,518,166
  ------------------- ----------------- ----------------- -----------------

End of Report.