Required Report - public distribution

**Date:** 2/20/2007

**GAIN Report Number:** TH7021

TH7022

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2007**

**Approved by:**

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

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Export prices remained high due to tight exportable supplies. The
Government's stock release of 283,000 tons should have only a marginal
impact on market prices as it only represents 7 percent of remaining
intervention stocks.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Feb. 20):**

  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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    570            555    535    522    580    515    540    545      545

  WR 100 B      320            327    323    322    325    325    318    323      322

  PB 5%         310            325    317    321    311    321    312    317      316

  WR 5%         312            325    315    314    313    314    313    315      315

  WR 10%        307            320    312    311    308    310    308    311      310

  WR 15%        300            315    302    308    304    305    303    305      304

  WR 25%        289            291    287    297    287    293    298    292      291

  WR 35%        286            \-     \-     283    \-     288    \-     286      284

  A 1 SUP       258            \-     258    256    258    263    253    258      257

  A 1 SPEC      256            \-     256    255    256    \-     251    255      255

  Source:                                                                         
  Average                                                                         
  actual prices                                                                   
  received from                                                                   
  exporters,                                                                      
  Exchange                                                                        
  rate: 35.50                                                                     
  baht/U.S.\$                                                                     
  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------

**Market Tone**

The market is quiet due to the long Chinese New Year holiday. However,
export prices for all grades of rice remained high due to tight
exportable supplies. Thai rice exporters expect the Government will
release intervention stocks of 283,000 tons from last week's tender, as
bidding prices have reached market prices. The offer prices for 5% grade
white rice reached U.S. \$298/MT, ex-warehouse, compared to current
market prices of around U.S. \$315/MT, F.O.B. Meanwhile, bidding prices
of 100% B grade fragrant rice were around U.S. \$324-460/MT, lower than
market prices, as the intervention stocks are low quality fragrant rice
from 2004/05. This stock release is unlikely to depress market prices,
as the quantity is not considered significant. The 283,000 tons being
tendered is only 7 percent of the nearly 4.1 million tons total
intervention stocks. Also, the February 28 Philippines' tender to buy
580,000 tons of white rice will consist 550,000 tons at 15% grade white
rice, with the rest at 25% grade white rice.

**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)        \%

  DEC 31     68,617      80,638      4,805       5,002        -3.9

  JAN 7      33,991      \-          34          67           -49.3

  JAN 14     69,794      \-          104         170          -38.8

  JAN 21     88,968      \-          193         257          -24.9

  JAN 28     79,950      68,175      273         363          -24.9

  FEB 4      85,361      81,018      358         444          -19.4

  FEB 11     76,188      82,617      434         547          -20.6

  FEB 18     109,128     87,657      543         635          -14.5
  ---------- ----------- ----------- ----------- ------------ ------------

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 Feb. 12-18, 2007
totaled 109,128 tons, up 32,940 tons from the previous week's total, and
up 21,471 tons from the four-week moving average of 87,657 tons. Export
during Jan. 1 -- Feb. 18, 2007 totaled 543,379 tons, as compared with
635,256 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- 31, 2007,
amounted to 621,407 tons, up 11 percent from 558,416 tons in the
previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Jan. 29 -- Feb.
2, Feb. 5-9, and\
Feb. 12-16, 2007 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Jan. 29 -- Feb. 2 Feb. 5-9          Feb. 12-16
                                                          (Preliminary)

  weekly sales        95,173            121,958           161,423

  4 week sum          354,509           367,098           451,915

  4 week mov. avg.    88,627            91,775            112,979

  Total weekly sales  394,885           516,843           978,226
  ------------------- ----------------- ----------------- -----------------

*Note: Actual registered rice sales of Feb. 12-16 will be available next
week.*

End of Report.