Voluntary Report - public distribution

**Date:** 9/14/2004

**GAIN Report Number:** TH4102

TH4102

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2004**

**Approved by:**

![](media/image1.wmf)Rodrick McSherry, Agricultural Counselor

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist/Russ Nicely, Agricultural
Attache

**Report Highlights:**

Export prices slowed down due to stagnated new order demand and less
aggressive parboiled rice exports.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Sep. 13):**

  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- ------
  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   385            360    446    426    415    380    390    400      401

  WR 100 B     240            245    248    242    238    239    235    241      244

  PB 5%        248            255    252    252    258    260    240    252      259

  WR 5%        236            240    242    238    235    234    230    236      240

  WR 10%       233            235    237    234    232    232    225    233      236

  WR 15%       231            232    232    232    230    230    220    230      234

  WR 25%       226            229    231    227    228    225    215    226      229

  WR 35%       224            227    230    222    226    223    210    223      226

  A 1 SUP      212            212    221    210    210    209    205    211      213

  A 1 SPEC     210            211    220    208    208    \-     203    210      211

                                                                                 

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

**Market Tone**

Export prices for most grades of rice slowed down due to weak new order
demand. Also, the heavy shipment of parboiled rice to African countries
has been completed, reducing demand for domestic white rice paddy for
parboiled rice production. Moreover, most foreign buyers are reportedly
waiting for the relatively cheaper Indian parboiled rice supply, which
is coming out onto the market by the end of this month. In addition, the
issuance of a press release last Friday of the deal between a Thai rice
exporter (President Agri Trading Co., Ltd.) and a Swiss broker (Ascot
Commodity NV) of a record 900,000 tons of 20% grade white rice for
monthly shipment of 150,000 tons to African countries starting in
October has not put any upward pressure on current prices. Most traders
reportedly saw this deal forming since the sell-off in the government
stocks to this exporter in the amount of 1.78 million tons last May.
Export prices are reportedly expected to remain at these current levels,
or to move in a narrow band for a while due to anticipated stagnated
demand.

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

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

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

  JUL 25       197,424        187,060        4,212         2,524

  AUG 1        188,845        181,539        4,400         2,658

  AUG 8        146,493        177,758        4,547         2,799

  AUG 15       125,322        164,521        4,672         2,912

  AUG 22       126,229        146,722        4,798         3,052

  AUG 29       159,721        139,441        4,958         3,180

  SEP 5        96,277         126,887        5,054         3,277

  SEP 12       112,729        123,755        5,167         3,406
  ------------ -------------- -------------- ------------- ---------------

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. 6-12, 2004 totaled
112,729 tons, up 16,515 tons from the previous week's total and down
10,963 tons from the four-week moving average of 123,755 tons. Exports
during Jan. 1 -- Sep. 12, 2004 totaled 5,167,189 tons, compared with
3,405,805 tons during the same period in 2003.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1- Aug. 31,
2004, amounted to 6,346,883 tons, up 37 percent from 4,623,658 tons in
the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Aug. 23 -27, Aug.
30 -- Sep. 3, and\
Sep. 6-10, 2004 are as follows:

  -------------------- ---------------- ---------------- ----------------
  Movement (MT)        Aug. 23-27       Aug. 30 -- Sep.  Sep. 6-10
                                        3                

                                                         

  weekly sales         158,002          180,012          174,302

  4 week sum           407,149          561,316          638,904

  4 week mov. avg.     101,787          140,329          159,726

  Total weekly sales   5,623,637        5,803,649        5,977,951
  -------------------- ---------------- ---------------- ----------------

End of Report.