Voluntary Report - public distribution

**Date:** 1/24/2006

**GAIN Report Number:** TH6010

TH6010

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2006**

**Approved by:**

![](media/image1.wmf)Russ Nicely, Agricultural Attache

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Export prices were offered higher in line with stronger Thai Baht and
high domestic prices.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Jan. 23):**

  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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   428            \-     420    \-     430    412    410    420      417

  WR 100 B     306            \-     303    \-     301    306    298    303      299

  PB 5%        286            \-     285    \-     290    292    292    289      287

  WR 5%        301            \-     300    \-     296    298    293    298      294

  WR 10%       296            \-     295    \-     292    295    288    293      290

  WR 15%       283            \-     290    \-     288    283    283    285      283

  WR 25%       268            \-     270    \-     269    265    278    270      271

  WR 35%       265            \-     \-     \-     267    263    273    267      267

  A 1 SUP      217            \-     216    \-     220    213    215    216      213

  A 1 SPEC     215            \-     214    \-     217    \-     213    215      211

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

**Market Tone**

Export prices for most grades of rice surged to a record high,
particularly for premium white rice prices, in line with continued
strengthening of the Thai Baht. The quotations were based on around 39
baht/U.S.\$, as compared to the previous week's average of around 39.6
baht/U.S.\$. However, given these high offer prices, exporters are
reportedly facing difficulties in sourcing rice domestically for pending
shipments due to aggressive government intervention program. As of Jan.
21, 2006, the Government bought 4 million tons of paddy, of which 1.7
million tons were white rice paddy, and 1.9 million tons were fragrant
rice paddy. In addition, trade sources expected that CY 2006 government
export target of 7.5 million tons was too optimistic due to current high
domestic prices, as compared to major competitors like Vietnam and
India.

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

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

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

  DEC 4        89,714         76,085         4,678         7,423

  DEC 11       82,201         81,303         4,760         7,553

  DEC 18       97,813         85,488         4,858         7,665

  DEC 25       80,754         87,620         4,939         7,772

  DEC 31       63,125         80,973         5,002         7,863

  JAN 8        69,443         \-             69            119

  JAN 15       105,420        \-             175           275

  JAN 22       82,797         \-             258           408
  ------------ -------------- -------------- ------------- ---------------

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 Jan. 16-22 totaled
82,797 tons, up 22,623 tons from the previous week's total. Exports
during Jan. 1-22, 2006 totaled 257,659 tons, as compared with 408,257
tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- 17, 2006,
amounted to 295,514 tons, down 29 percent from 418,649 tons in the
previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Jan. 2-6, Jan.
9-13, and\
Jan. 16-20, 2006 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Jan. 2-6          Jan. 9-13         Jan. 16-20

  weekly sales        88,771            124,042           100,915

  4 week sum          \-                \-                \-

  4 week mov. avg.    \-                \-                \-

  Total weekly sales  88,771            212,813           313,728
  ------------------- ----------------- ----------------- -----------------

End of Report.