Required Report - public distribution

**Date:** 7/31/2007

**GAIN Report Number:** TH7100

TH7100

**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 declined slightly due to continued weakening of the Thai
baht. Exporters remain concerned about exchange rate uncertainties.
Meanwhile, new enquiries from foreign buyers were quiet, presumably due
to current price fluctuations.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Jul. 31):**

  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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    567            570    \-     544    580    550    550    560      561

  WR 100 B      334            343    \-     334    335    334    330    335      337

  PB 5%         330            350    \-     330    328    335    325    333      334

  WR 5%         328            335    \-     329    330    323    325    329      330

  WR 10%        322            332    \-     326    325    320    320    325      326

  WR 15%        316            323    \-     323    320    313    315    319      320

  WR 25%        301            307    \-     317    305    300    310    307      308

  WR 35%        298            \-     \-     \-     \-     296    \-     297      298

  A 1 SUP       265            \-     \-     258    263    266    260    262      262

  A 1 SPEC      262            \-     \-     255    260    \-     257    259      258

  Source:                                                                         
  Average                                                                         
  actual prices                                                                   
  received from                                                                   
  exporters,                                                                      
  Exchange                                                                        
  rate: 33.6                                                                      
  baht/U.S.\$                                                                     
  ------------- -------------- ------ ------ ------ ------ ------ ------ -------- -------

###### Market Tone

Export prices declined by \$1-2/MT due to continued weakening Thai baht
to around 33.7 baht/\$U.S., compared to last weeks average of 33.5
baht/\$U.S. Exchange rate uncertainties remain a major concern among
exporters. Despite this weeks weakening, exporters feel the baht could
reach 32 baht/\$U.S. unless the Government intervenes with financial
controls. As a result, many exporters have been focusing their business
on sub-contracting from the Government-to-Government deals in order to
reduce their exposure to exchange rate risk. Ongoing exchange rate
fluctuations have made trading quiet as both buyers and seller are
waiting for the baht to stabilize.

**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)        \%

  JUN 10     128,888     117,886     2,285       2,176        5.0

  JUN 17     115,381     119,835     2,401       2,279        5.3

  JUN 24     108,536     115,210     2,509       2,379        5.5

  JUL 1      92,127      111,233     2,601       2,448        6.2

  JUL 8      91,843      101,972     2,693       2,534        6.3

  JUL 15     110,982     100,872     2,804       2,613        7.3

  JUL 22     97,823      98,194      2,902       2,713        7.0

  JUL 29     93,085      98,433      2,995       2,800        7.0
  ---------- ----------- ----------- ----------- ------------ ------------

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 Jul. 23-29, 2007
totaled 93,085 tons, down 4,738 tons from the previous week's total, and
down 5,348 tons from the four-week moving average of 98,433 tons. Export
during Jan. 1 -- Jul 29, 2007 totaled 2,995,063 tons, as compared with
2,799,694 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- Jul. 18,
2007, amounted to 4,456,015 tons, up 10.2 percent from 4,043,841 tons in
the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Jul. 9-13, Jul.
16-20, and Jul. 23-27, 2007\
are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Jul. 9-13         Jul. 16-20        Jul. 23-27
                                                          (Preliminary)

  Weekly sales        128,885           106,198           52,792

  4 week sum          370,441           387,340           359,675

  4 week mov. avg.    92,610            96,835            89,919

  Total weekly sales  3,075,563         3,181,761         3,234,553
  ------------------- ----------------- ----------------- -----------------

End of Report.