Voluntary Report - public distribution

**Date:** 1/10/2006

**GAIN Report Number:** TH6003

TH6003

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2006**

**Approved by:**

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

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Export prices increased significantly in line with the strengthening of
the Thai Baht. Meanwhile, domestic prices remained unchanged at high
levels due to the government intervention program.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Jan. 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   420            410    \-     420    410    405    385    408      400

  WR 100 B     298            300    \-     295    292    296    292    296      287

  PB 5%        281            287    \-     280    283    286    280    283      277

  WR 5%        294            295    \-     290    287    290    287    291      282

  WR 10%       288            287    \-     286    283    287    282    286      277

  WR 15%       276            284    \-     274    278    275    277    277      270

  WR 25%       261            272    \-     260    263    260    272    265      259

  WR 35%       258            \-     \-     258    261    257    267    260      256

  A 1 SUP      213            218    \-     213    210    210    210    212      208

  A 1 SPEC     211            216    \-     211    208    \-     208    211      207

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

**Market Tone**

Export prices for all grades of rice surged in response to the
strengthening of the Thai Baht. Trade sources reported that the current
quotations were based on 39.8 Baht/US\$, as compared to around 41
Baht/US\$ in the previous week. Most exporters are reportedly reluctant
to conclude the deals because of current volatile exchange rates, fueled
by the weakening of the U.S. dollar since the beginning of this year.
Meanwhile, domestic prices remained unchanged at high levels due to the
government intervention program. As a result, Thai rice is still
unattractive, compared to Vietnamese rice which is around U.S.\$ 30/MT
cheaper. Also, the rumor of proposed new government stock release is
unlikely to ease the domestic prices because the Government will award
those who offer the prices higher than the market prices. Trade sources
reported that few exporters will likely participate in this tender, as
they could source rice at the market prices, given the current inactive
foreign market for Thai rice.

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)

  NOV 20       81,073         90,637         4,516         7,095

  NOV 27       72,224         80,533         4,588         7,251

  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
  ------------ -------------- -------------- ------------- ---------------

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. 1-8, 2006 totaled
69,443 tons, as compared with 119,495 tons in the previous year.

According to the Department of Foreign Trade, Ministry of Commerce,
total rice exports (including fragrant rice) during Jan. 1 -- Dec. 31,
2005, amounted to 7,282,218 tons, down 28 percent from 10,134,465 tons
in the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Dec. 19-23, Dec.
26-30, 2005 and Jan. 2-6, 2006 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Dec. 19-23        Dec. 26-30        Jan. 2-6

  weekly sales        101,830           84,802            88,771

  4 week sum          447,484           381,136           \-

  4 week mov. avg.    111,871           95,284            \-

  Total weekly sales  5,311,864         5,394,666         88,771
  ------------------- ----------------- ----------------- -----------------

End of Report.