Required Report - public distribution

**Date:** 7/25/2006

**GAIN Report Number:** TH6073

TH6073

**Thailand**

**Grain and Feed**

**Weekly Rice Price Update**

**2006**

**Approved by:**

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

U.S. Embassy, Bangkok

**Prepared by:**

Ponnarong Prasertsri, Agricultural Specialist

**Report Highlights:**

Despite the Government's plan to release fragrant rice paddy stocks,
fragrant rice prices surged due to tighter exportable supplies

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Bangkok \[TH1\]

\[TH\]

**Indicative Prices (Week Ending Jul. 24):**

  ------------ -------------- ------ ------ ------ ------ ------ ------ -------- -------
  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   543            \-     545    531    \-     526    530    535      517

  WR 100 B     320            324    325    322    \-     322    318    322      322

  PB 5%        315            311    315    321    \-     319    315    316      315

  WR 5%        314            320    320    317    \-     314    313    316      316

  WR 10%       309            315    314    314    \-     310    308    312      312

  WR 15%       296            310    296    309    \-     295    303    302      301

  WR 25%       277            297    285    301    \-     276    293    288      287

  WR 35%       275            \-     \-     296    \-     272    \-     281      278

  A 1 SUP      217            230    216    216    \-     219    215    219      218

  A 1 SPEC     215            228    214    213    \-     \-     213    217      217

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

**Market Tone**

Export prices for most grades of rice continued to increase due to tight
exportable supplies, particularly fragrant rice. Although the Government
conducted bidding for its 2005/06 fragrant paddy stocks of around
766,060 tons on Jul. 24, 2006, fragrant rice export prices continued to
surge. Many exporters were reportedly unable to participate in the
tender, as they do not have milling facilities. Trade sources reported
that there were around 200 local millers, who also participated in the
government intervention program, participating in the tender. The
bidding prices are expected to be lower than the intervention prices.
Meanwhile, the Government still has no plan to release its fragrant rice
stocks of around 1.3 million tons.

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 4      172,816     116,268     2,073       2,297        -9.8

  JUN 11     106,878     117,967     2,179       2,427        -10.2

  JUN 18     107,623     114,403     2,287       2,542        -10.0

  JUN 25     95,885      120,801     2,383       2,612        -8.8

  JUL 2      66,685      94,268      2,450       2,714        -9.8

  JUL 9      86,684      89,219      2,536       2,811        -9.8

  JUL 16     78,983      82,059      2,615       2,914        -10.3

  JUL 23     100,464     83,204      2,716       2,999        -9.5
  ---------- ----------- ----------- ----------- ------------ ------------

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 Jul. 17-23, 2006
totaled 100,464 tons, up 21,480 tons from the previous week's total, and
up 17,260 tons from the four-week moving average of 83,204 tons. Exports
during Jan. 1 -- Jul. 23, 2006 totaled 2,715,731 tons, as compared with
2,999,158 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 12,
2006, amounted to 3,898,191 tons, down 0.5 percent from 3,919,728 tons
in the previous year.

**Weekly Rice Sales**

Private registered rice export sales for the period of Jul. 3-7, Jul.
10-14, and\
Jul. 17-21, 2006 are as follows:

  ------------------- ----------------- ----------------- -----------------
  Movement (MT)       Jul. 3-7          Jul. 10-14        Jul. 17-21

  weekly sales        109,628           38,818            61,850

  4 week sum          497,327           491,464           241,379

  4 week mov. avg.    124,332           122,866           60,345

  Total weekly sales  3,212,055         3,250,873         3,312,723
  ------------------- ----------------- ----------------- -----------------

End of Report.